California-based EV startup Lucid Group (NASDAQ:LCID) on Tuesday offered a sneak peek at its upcoming midsize SUV slated to compete against Tesla Inc's (NASDAQ:TSLA) bestselling Model Y.

What Happened: Lucid on Tuesday showed a darkened image of the upcoming midsize vehicle at its technology and manufacturing day event. The image, however, does not give away much besides the upper silhouette of the vehicle, significantly different from the Model Y but bearing resemblances to Lucid's upcoming Gravity SUV.

But the proportions of the midsize are seemingly way smaller than Gravity, which is a full-size SUV.

The midsize vehicle is expected to enter production in late 2026 with a starting price of about $48,000. The price point of $48,000 will put the vehicle in direct competition with Tesla's mass-market offerings Model 3 and Model Y. Tesla's Model Y starts at $44,990 for the base version while the base version of the Model 3 sedan starts at $38,990.

"With leading technology and efficiency, it will be able to deliver the same range as competitors while using a smaller battery," Lucid said about its upcoming vehicle.

Why It Matters: Lucid's current lineup has higher-end, low-volume EV offerings. The company is attempting to break out of the segment with the midsize.

Lucid's premium sedan called Lucid Air is its only vehicle currently in production. Its cheapest variant has a starting price of $69,900 while the more premium Grand Touring and Sapphire versions start at $109,900 and $249,000, respectively.

The company is gearing up to start production of its Gravity SUV, which it believes to be better than rival Tesla's premium Model X SUV, later this year. The vehicle is expected to start under $80,000, around the same price bracket as its Air sedan.

In the second quarter, Lucid delivered 2,394 EVs, marking its best quarter to date in terms of sales. However, the company has yet to turn a profit and reported a net loss of $643.39 million for the three months through the end of June.

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Photo courtesy: Lucid