Volvo's Polestar unveils electric car touted as Tesla rival

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This undated photo made available by Polestar, shows the Polestar 2 electric car in Spain. Volvo’s electric performance brand Polestar is unveiling a battery-powered compact car which to be shown at next month’s Geneva auto show, becomes available in 2020. (Polestar via AP)

Volvo's electric performance brand Polestar is unveiling a battery-powered compact car touted as a rival to Tesla's Model 3.

The Polestar 2 is a five-door vehicle with a panoramic glass roof, an all-vegan interior and a battery with enough capacity to drive 500 kilometers under European tests for range measurement, or 275 miles under U.S. testing rules.

With 408 horsepower, it should accelerate from zero to 100 kph (0-62 mph) in under five seconds. Polestar said Wednesday that the car's U.S. price for the launch version will be $55,500 after tax incentives; later a lower-priced version with less range is envisioned.

The car, to be shown at next month's Geneva auto show, becomes available in 2020.

Volvo Car Group, headquartered in Goteborg, Sweden, is a subsidiary of Chinese automaker Geely.