Volkswagen beats Elon Musk in the race to cheap EVs, revealing a car it plans to sell for $26,600

• Elon Musk has been talking about the $25,000 electric car for years.

• Volkswagen just beat him to the punch with an EV it expects to sell for 25,000 euros ($26,600).

• But the newly unveiled ID. 2all concept car won't ever make its way to the US.

For years, Elon Musk has talked about Tesla's plans to reveal a $25,000 electric car for the masses. Volkswagen just beat him to the punch.

The German automaker on Wednesday revealed the ID. 2all concept: a small, battery-powered hatchback that it plans to sell for 25,000 euros ($26,600) or less when it goes into production in 2026.

A vehicle at that price point would represent a huge step forward for the EV market. The average new EV sold for $58,385 in February, according to Kelley Blue Book, and the cheapest Tesla is the Model 3, which starts at $42,990.

The ID. 2all show car is an early preview of an actual vehicle to come later down the road — one which may be called the ID.2. (VW currently sells an ID.3, ID.4, ID.5, and ID.6.) It hints at the overall design and capabilities we can expect from the real deal when it arrives by 2026.

According to Volkswagen, the EV has a range of up to 280 miles, front-wheel drive, and a single motor delivering 223 horsepower.

Interior photos show a sleek, minimalist cabin with few buttons and two large screens. The accelerator and brake pedals are styled as play and pause buttons, which is a quirky touch.

There's just one snag for US-based buyers: Volkswagen has no plans to bring the future model stateside, a company spokesperson confirmed to Insider.