The sudden and unexpected success of Tesla Motors seems to have caught most major automakers off guard. Who would have thought that a $70,000 luxury EV with the performance of a muscle car would be popular with the upper class? Certainly not GM, which offers just a single electric car, the diminutive and economical Chevy Spark EV, and only on the west coast.

But GM could be poised to play catch up in a big way. The Wall Street Journal reports that the General is working on an electric car that could go 200 miles between charges and cost just $30,000, disrupting Tesla’s plans for a similar vehicle set to launch in 2016 or 2017.

The technology for such long-range EVs is certainly available; the top-of-the-line Tesla Model S with a 85 kWh battery pack is rated by the EPA for up to 265 miles of travel between charges. Of course it also starts at $80,000, and options can easily take it over $100,000. For GM, the only major holdup is costs, with battery technology still costing between $400 and $500 per kWh.

Tesla’s approach has been to use massive quantities of Panasonic laptop batteries for its battery pack, reportedly allowing the electric car maker to build battery packs for half the cost of GM. But if GM can narrow that gap and develop its own high-density, low-cost batteries, it has a much larger global supply and manufacture chain. It will also have to match the Tesla’s performance though, with the top-rated model sprinting from 0 to 60 mph in about 4 seconds, as fast as a Camaro SS.

Though it may take awhile to get going, if GM senses there is a real market for electric vehicles (and Tesla certainly seems to be proving that), the lumbering automotive giant could surpass Tesla in EV sales almost overnight. Badge it a Chevy, give it the performance of an equivalent V6-equipped sedan, and you just might have a hit on your hands.

It sounds like GM is going to take another real shot at electric cars. Does Tesla stand a chance? Does GM?