Tesla's next car will be a lot cheaper than previously expected. In fact, it could cost as little as $25,000. CEO Elon Musk confirmed last year that its first mass-market car, the Model 3, would price at about $35,000.

A company representative confirmed the $35,000 price tag to Bloomberg on Tuesday and made it clear that the total cost is before incentives. This means that with tax credits included, the car could end up costing only $25,000.

Bloomberg estimates that tax incentives could shave off as much as $10,000 from the total cost in some states. But no matter which state you live in, there is a federal income-tax credit of up to $7,500 that is available to everyone in the country.

It's worth noting that with a $35,000 price tag before incentives, Tesla's Model 3 is cheaper than General Motors upcoming Bolt EV, which prices at a suggested retail price of $37,500 before incentives.

The Model 3 is expected to have a range of about 200 miles per charge and be smaller than the Model S. Tesla is expected to show off the Model 3 at an event at the end of March and begin producing the car by the end of 2017. But it's unclear if the company will show off the actual car or if they will only show off images.

Regardless, Musk has said a few times recently that he is pleased with how the Model 3 is turning out so far.

But Musk has emphasized that the Model 3 will not have as many features as the Model X.

Musk said at a recent event:

I do feel pretty optimistic about the Model 3. The key thing with the Model 3 is higher volume at a lower price. It is a smaller car, and without as many bells and whistles as the Model S or X. But the goal is to have a very compelling, affordable, mass-market electric vehicle and I feel pretty good about that goal.