Elon Musk has admitted that Tesla’s current models are too expensive and suggests that the electric automaker could release a new small entry-level model.

While speaking with analysts and investors on a call relating to the company’s second-quarter performance, Musk said the high pricing of Tesla’s models is something that needs to be fixed.

“It is important to make the car affordable. I think we will not succeed in our mission if we do not make cars affordable,” Musk said. “Like the thing that bugs me the most about where we are right now is that our cars are not affordable enough. We need to fix that.”

Tesla’s entry-level Model 3 starts at $37,990 in the United States and while that’s a reasonable price for the range, performance, and technology you get, it is more than many new car buyers are willing to spend, particularly when you can be good (but basic) ICE-powered hatchbacks for well under half the price, Business Insider reports.

Musk was later asked about a potential new Tesla with a lower price point and while the executive couldn’t offer specifics, he did indicate such a vehicle is likely.

“Don’t think we can comment on our detailed product road map beyond what’s announced because I think we want to reserve that for product launches,” he said, “but it would be reasonable to assume that we would make a compact vehicle of some kind and probably a higher capacity vehicle of some kind. These are likely things at some point. But I do think there’s a long way to go with 3 and Y and with Cybertruck and Semi. So it’s a long way to go with those. I think we’ll do the obvious things.”

This is not the first time we have heard about a new entry-level EV from the brand. In fact, it was only in June that Tesla launched a design contest in China for a new model. While unconfirmed, it is claimed this vehicle will be a small car designed to slot below the Model 3.