In a recent interview between Tesla Motors CEO Elon Musk and Norway’s minister of transport and communications Ketil Solvik-Olsen, it was revealed that there will be more affordable Tesla vehicles later on.

“I’m super excited about being able to produce a car that most people can afford. And there will be future cars that are even more affordable down the road, but, with something like the Model 3, it’s designed such that roughly half of the people will be able to afford the car,” he explained. “Then, with the fourth-generation and smaller cars and whatnot, we’ll ultimately be in the position where almost everyone will be able to afford the car.”

A major challenge that Tesla will need to tackle before it can compete with fossil-fuel cars would be the huge subsidies that oil and gas companies receive. “I think most people don’t realise this. It’s heavily subsidised because of the direct subsidies that oil and gas companies get – which are enormous” the CEO explained.

“So, the thing to do is try to eliminate the gigantic incentives for oil and gas in order just to compete on a level-playing field,” Musk said, referring to the future of Tesla and electric vehicles, on the whole.

Meanwhile, he also revealed that he is currently working on a new idea for public transportation in inter-urban areas. “We have an idea for something which isn’t exactly a bus, but would solve the density problem for the inner-city situations. I think we need to rethink the whole concept of public transport and create something that people are actually going to like a lot more,” he disclosed.