BMW will begin production of its iX3 battery-electric SUV in 2020, and will equip the vehicle with its fifth-generation electrified eDrive powertrain.

BMW's first all-electric SUV provides 273 miles of range under the WLTP testing cycle. It will use a 74-killowatt-hour lithium-ion battery pack and electric drive motor. The motor is expected to produce 286 horsepower and 295 pound-feet of torque.

The iX3, which will be sold alonside the gasoline-powered X3, arrives as luxury automakers are mounting increased competition with Tesla, including the Mercedes-Benz EQC, which is now expected to arrive in early 2021; Audi's E-tron crossover and sedan; Jaguar's I-Pace; and others.

This current crop of vehicles will need to make it without the federal tax credit of $7,500 that has benefitted Tesla owners but is not expected to be renewed after 2019.