Volkswagen aims to undercut the Tesla Model 3 when its first electric car rolls out. The German automaker says it plans to price its upcoming electric hatchback $7,000 to $8,000 less than the Model 3 sedan, according to a report from Electrek.
While speaking at Automobil Forum, VW’s chief strategist Thomas Sedran confirmed the pricing plans for the upcoming vehicle. The pricing would mean VW’s first electric vehicle will come in around $28,000.
The company’s first electric product is expected to be based on the I.D. concept car. This means it will be a Golf-sized hatchback based on VW’s MEB architecture. Since announcing the concept car last year VW has said it intends to beat the Model 3 in terms of electric range as well. The Model 3 features 215 miles of electric range, while the I.D. concept car aimed for 250 miles.
VW’s electric hatchback is expected to launch in Europe in 2019. It isn’t yet known when the car will arrive in the U.S., but the company has previously used 2020 as the time frame for its electric car rollout.