Tesla Motors chief executive Elon Musk said on Tuesday that the company's Model 3 could generate $20 billion in revenue per year and an annual gross profit of about $5 billion.

A "modest capital raise" could be needed to fund Tesla's strategic plans, and new products in the plan could cost "tens of billions" over time, Musk said at a press conference at the official unveiling of Tesla's battery "gigafactory" near Reno, Nevada.

Last week Musk unveiled an ambitious plan to expand the company into electric trucks and buses, car sharing and solar energy systems.

Tesla has taken 373,000 orders for the Model 3, which has a starting price of $35,000, about half its Model S. It has said it would begin customer deliveries in late 2017. – Reuters