BMW's iX3 compact SUV will arrive in 2020 to compete with Teslas and other luxury EVs. - Photo courtesy of BMW.

BMW's iX3 compact SUV will arrive in 2020 to compete with Teslas and other luxury EVs.

Photo courtesy of BMW.

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.

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