Mercedes-Benz unveiled on Wednesday the first of its all-electric EQ line, aimed at helping the company to take the lead in the field of electric drive systems and vehicle software, Kallanish reports.

The new entry-level model, EQA, is a compact electric SUV set to compete directly with Tesla. The vehicle currently under production in Rastatt, Germany, and Beijing, China, will be available to European customers from the spring 2021. Sales start in Europe on 4 February.

The EV has a starting range of 426 kilometres (WLTP), but a new 500-km range version will be launched “in due course.” The “double-decker” lithium-ion battery sits as a structural element within the underbody of the car. The battery systems are supplied by Mercedes’ subsidiary Accumotive and manufactured in Kamenz. The battery factory in Jawor, Poland, is also preparing to start production for the EQA.

“We have defined some ambitious product development goals and resolved to push forward with the accelerated market introduction of new technologies,” says Markus Schäfer, Mercedes-Benz Cars’ chief operating officer. “The EQA proves that, by using a tried and tested architecture, it is possible to achieve an excellent compromise between performance, costs and time to market.”

Buyers in Germany will see prices starting at €47,540.50 ($57,558.90) and claim €9,000 off the price through the federal government’s environmental bonus of €6,000 and another €3,000 from Mercedes.

The digital world premiere of the car describes the EQA model as an “urban entry model,” featuring sustainability, versatility and a fresh look. The launch video was presented by three social influencers testing the EVs.