Audi AG announced this week that it is working on an electric car slated for a 2017 release, which puts it in direct competition with Tesla's Model S electric vehicle.

Whether the new car will be based on a current Audi vehicle or introduced as a new model has yet to be determined, according to Rush Times. However, Dr. Ulrich Hackenberg, head of technical development at Audi, did say that the vehicle will have a range of 280 miles.

"Such a car is under development," Hackenberg told Auto Express in an interview. "I was able to engineer the R8 e-tron project and technology with the team and we are on the way to a range of 450 kilometers (280 miles). Let's say that technology will also be carried over and is a trailer for another car with long range."

The new Audi EV was also said to possibly include a saloon-style body intended to allow "for better packaging," which could provide more room for the car's batteries beneath the floor so it doesn't interfere with passenger space or cargo.

The only other information Hackenberg revealed about the new vehicle is that "it will not be a sports car," Engadget reported.

Audi is getting more involved in the electric car market as it plans to make the technology in its A3 e-tron plug-in hybrid available in other models.

While Tesla remains in the lead of the electric car race, Audi's new project could be a formidable challenge.