The Polestar 2, a competitor for the Tesla Model 3, has teased via an image released on the company's social media feeds.
Describing the way forward as electric, Polestar confirmed "this year we go all-in with the launch of the electric Polestar 2".
Few details are known about the Polestar 2, but it is expected to have a driving range of around 400 kilometres.
Although the Model 3 is designed to have a starting price of US$35,000, only more expensive models, with prices from US$44,000 to beyond US$60,000 are currently under production.
Polestar began life as a racing and tuning outfit. In 1995 it starting working with Volvo vehicles, with the first Polestar tuned and branded vehicles debuting in 2013.
Volvo purchased the tuning outfit in 2015, leaving the motorsports operation, now known as Cyan Racing, as a standalone operation. In 2017 it announced Polestar would become a standalone brand focusing on electrified vehicles.
MORE: Polestar coverage