Porsche has given the green light to build an all-electric car aimed at challenging Tesla's dominance of the battery-powered sportscar market.
The German firm said it would create more than 1,000 jobs via a €700m (£500m) investment in new facilities and assembly line.
Porsche's Mission E, revealed as a concept car earlier this year, is due to go on sale by the end of the decade.
The four-door car's range will be 310 miles, and hit 62mph in 3.5 seconds.
This pitches the Mission E - a name unlikely to stay once the launch date nears - against Tesla's powerful Model S.
Porsche is owned by Volkswagen Group, currently embroiled in 'dieselgate', which has said it would invest in a range of all-electric and hybrid vehicles across its brands over the next few years.