Tesla is ruling the electric car market currently, but this may change in the future because the automaker will be getting some tough competition from rivals that are building affordable electric vehicles. The EV firm is heavily banking on the success of the Model 3 to carry out its ambitious business plans, and some upcoming competition could be a threat to that.

Tesla
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Volvo planning a Tesla rival

At the Geneva Auto Show, Volvo Cars of North America CEO Lex Kerssemakers informed attendees that they will be releasing their first fully electric vehicle with a price range of $35,000 to $40,000 and a range of 250 miles in 2019, according to Automotive News.

The Model 3, Tesla’s first affordable electric car, is priced around $35,000 as well. There is also another EV priced around the same range: the Chevrolet Bolt. The Bolt is priced over $37,000, but with the $7,500 federal tax credit, the price comes down to $30,000. The Bolt has a 238-mile range, and it’s already begun rolling out to some U.S. dealerships, but the car is not expected to be widely available until the end of the year. Some Model 3 pre-orders are expected to be delivered by the end of the year, and new orders will probably be delivered next year.

The sleekly designed Model 3 was revealed last year, whereas the design of Volvo’s electric vehicle is still unknown. According to Kerssemakers, Volvo has not yet decided whether it will come up with a completely new design or offer the EV as an update to an existing model. Kerssemakers, who is well aware of the time crunch for coming up with this car, is confident on meeting the schedule using Volvo’s modular platforms.

Price and range are keys to success

Many consumers do not find the size of the electric car as appealing as its range, so they cannot be persuaded to purchase EVs just on the basis of their sizes or designs. Volvo of North America’s CEO believes the same and said people are reluctant to buy a full EV because they believe they do not have sufficient range. Kerssemakers said he will put the price and range of the electric car as prerequisites for the United States.

“If I want to make a point in the United States, if I want to make volumes, that’s what I believe I need,” he said.

On Monday, Tesla shares closed up 1.02% at $246.17.