With Thierry Bollore stepping in as JLR CEO next month, his first order of business could be figuring out a way to make the Jaguar brand more successful.

According to AutoExpress, Bollore wants to turn Jaguar into a fully-electric company in order for it to compete with the likes of Tesla and Polestar, and key to that plan is a direct rival for the Model 3. Such a car could look like a mix between a saloon and a crossover, sort of like the Polestar 2.

It would also serve as the entry-level model for Jaguar’s fully-electric range, which at the moment holds just the I-PACE, although an all-electric, all-new XJ is also on its way.

Jaguar’s Model 3 and Polestar 2 rival could also serve as a direct replacement for the XE, whose sales dropped by nearly 28 percent during the last financial year, prompting a radical overhaul.

“A small electric Jag would be great – we need to think about that,” said JLR engineering exec Nick Rogers. “That’s a really cool space that ideally we want to be in, and ideally our customers want us to be in – and it’s extremely relevant at this time.”

Whether or not such a model will retain the XE nameplate remains to be seen, but either way, it will likely utilize JLR’s new Modular Longitudinal Architecture (MLA). Its powertrain would of course allow for excellent performance and refinement, worthy of the Jaguar brand.

How small is too small?

It’s possible that Jaguar won’t stop at a Tesla Model 3 rival as far as downsizing is concerned. There have been rumors of an even smaller EV and with Jaguar and BMW working together on electric powertrains, something similar in size to a BMW 1-Series or an X2 could see the light of day.