BERLIN—Volkswagen AG on Wednesday took the wraps off its ID.4 all-electric sport-utility vehicle in a bid by the world’s largest car maker to challenge Tesla Inc. and re-energize a problem-ridden electric vehicle strategy.
Volkswagen remains years behind its U.S. rival in developing and selling a mass market electric car. Even as it slowly catches up, Tesla has stayed one step ahead, launching better-performing vehicles and even building a new factory near the German capital, in Volkswagen’s backyard.
The…