(Bloomberg) -- Lucid Group Inc. has started production on its debut electric consumer car, with deliveries to begin at the end of next month.

The company initially will focus on a $169,000, limited production Dream Edition of the Air sedan, which can run 520 miles (837 kilometers) on a single charge. The first battery-electric Air vehicles destined for customers rolled off the factory line in Casa Grande, Arizona, on Tuesday, the company said in a statement. 

The startup is considered a potential challenger to market leader Tesla Inc., in part because Lucid claims world-beating ranges for its vehicles. Lucid Chief Executive Officer Peter Rawlinson had been chief engineer for Tesla’s Model S sedan, that company’s longest-range vehicle, with a top range of 405 miles, according to the Environmental Protection Agency.

Versions of the Air with less range and lower prices will begin deliveries after October, the Newark, California-based company said, without giving a specific date.

Read More: Lucid’s Debut EV Gets 520-Mile EPA Rating, Eclipsing Tesla 

Lucid said it has more than 13,000 reservations for the Air. The company has begun expansion of its Arizona factory, with plans to add 2.85 million square feet (265,000 square meters) to increase manufacturing capability.

Production of its next vehicle -- the battery-electric Gravity sport utility vehicle -- is expected to begin in 2023.

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