Volkswagen is taking on Tesla’s Model Y.
The company revealed the ID.4, its first electric SUV available in the U.S., on Wednesday. It starts at $39,995, while Tesla’s Model Y starts at $49,990.
The ID.3, a smaller hatchback, came out in Europe earlier this month.
During a media preview, VW executives compared the five-seater ID.4 to the original Beetle because it’s compact and efficient. The electric motor is located in the back of the vehicle, while the 82-kWh battery rests along the base in a “skateboard” layout.