(Web Desk) - China's Xiaomi announced its first electric vehicle Thursday, predicting it is the first step toward overtaking Tesla.
The SU7 will have a range of up to 500 miles, and it will compete for customers with the Tesla Model S, which has a range of 320 to 410 miles.
The Chinese-made vehicle will also feature self-driving, an entertainment system that is fully compatible with Xiaomi's smartphones, and blistering acceleration that will take it from 0 to 62 miles per hour in 2.78 seconds.
Pricing has yet to be announced, but CEO and co-founder Lei Jun said at the unveiling that it could be anywhere between $14,000 and $56,000 - the Model S starts at $74,990.
With this move, the smartphone maker joins the ranks of other electronics companies like Apple and Foxconn that have been trying to break into the transportation business.
Unlike Apple, the company aims to sell its first cars in 2024. Xiaomi is one of the largest smartphone manufacturers in the world.
Lei said that he expects Xiaomi's cars to rival Porsche's performance and Tesla's technology in the Chinese electric vehicle market.
But the car - likely to go on sale in several months - is making its debut at a time when China's auto market - the world's largest - is wrestling with oversupply and slowing demand.
These two factors have stoked a bruising price war, but that didn't stop Xiaomi Chief Executive Lei Jun from outlining big ambitions.
By working hard over the next 15 to 20 years, we will become one of the world's top five automakers, striving to lift China's overall automobile industry,' he said at the unveiling on stage at the China National Convention Center in Beijing.
Those plans include building 'a dream car comparable to Porsche and Tesla,' he added.
The SU7 is also expected to appeal to customers due to its shared operating system with Xiaomi's popular phones and other electronic devices. Its drivers will have seamless access to the company's existing portfolio of mobile apps.