Jaguar is releasing its Model X competitor in 2018, Business. The SUV will be Jaguar's very first electric car, Business Insider reveals.

The move puts Jaguar in direct competition with Tesla's Model X, which has also experienced strong demand. In fact, Tesla sold roughly the same number of Model X SUVs (11,550) as Model S sedans (13,450) in the first quarter.

Called I-PACE, the SUVis a preview of Jaguar's electric, five-seat production car coming in 2018. That production car will be Jaguar's first ever battery-powered vehicle. The brand new red I-PACE debuted at the Geneva Motor Show in March.

The car features a "cab-forward design." Jaguar was able to execute this design because the car doesn't need an engine upfront.

The car comes with a 90 kWh battery pack that powers two, 200 hp electric motors sitting over each axle.

Jaguar claims the car has a range of 220 miles, allowing it to compete most closely with the Model X 75D that offers 237 miles of range and starts at $85,500.