Investors seemed unusually bullish on startup electric carmaker Tesla Motors this week, after the company raised a stunning $786 million in a follow-on share offering, despite losing over $4,000 on every vehicle it sells.
It appears the future for Tesla is anything but certain after established rival Audi AG announced plans over the weekend to produce an electric crossover with a range that rivals Tesla’s Model S.
The new crossover will also be incredibly similar to Tesla’s upcoming Model X SUV.
Audi’s E-tron Quattro, which will be officially unveiled at next month’s Frankfurt auto show, can drive more than 310 miles on a single charge. That technically beats Tesla’s stated range for the base version of the Model S, yet is slightly behind the upmarket 85D variant.
Audi’s new concept sports three electric motors and features movable components at the front, side and rear for aerodynamic performance and extended driving range.
The E-tron concept is the first step in the design process of an electric sport-utility vehicle the company plans to start producing in 2018.
While Tesla’s model X should be able to hit the market in late 2016, over a year ahead of Audi, the move highlights that large automakers will not be sitting on the sidelines of the electric car revolution.
As Tesla launches the Model X and then the low priced Model 3, it will be facing a slew of mass produced vehicles made by the established automakers.