Mercedes-Benz has unveiled an all-electric SUV that it plans to start producing next year in Germany, the latest to challenge Tesla in the luxury electric car market.

Tesla's stock slumped more than 4 percent after a Goldman Sachs analyst said he expects the company to face rising competition while its spending is likely to increase.

Daimler AG's luxury brand showed off its EQC sport utility crossover at an event outside Stockholm. It's seen as a rival to Tesla's Model X, and Mercedes said the vehicle will go on sale in the U.S. in 2020. The car will have a range of about 280 miles, the company said.

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Mercedes' new electric SUV also comes as Jaguar Land Rover offers the I-Pace electric SUV and Volkswagen's luxury arm Audi is due later this month to unveil its e-tron in San Francisco.

Goldman analyst David Tamberrino sees Tesla's stock falling to $210 in six months. It closed Tuesday at $288.95.