BMW AG Chief Executive Norbert Reithofer unveiled on Monday the auto maker's first mass-production electric car, saying his company would need to boost sales of plug-in and battery electric vehicles dramatically by 2025 to meet regulatory requirements.

The BMW i3 is expected to go on sale in the U.S. in the second quarter of 2014 where it is expected to be priced at $41,350 before federal tax and other incentives. An optional "range extender"—a small gasoline motor—will likely boost the price tag to $45,000.

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