Kia will beat Rivian and Tesla into affordable mass-market EVs
Although Rivian and Tesla are making headlines with planned expansions into mass-market electric vehicles, Kia is set to launch two affordable EVs of its own. One of them, the Kia EV3, is expected to launch by the end of the year.
More affordable EVs are coming
Rivian unveiled its highly anticipated R2 electric SUV Thursday. The electric SUV will start at $45,000, with all trims boasting over 300 miles range.
At 4,715 mm long, 1,700 mm tall, with a wheelbase of 2,935, the R2 is smaller than Rivians current R1S electric SUV ( 5,100 mm x L, 1,873 mm x H, 3,075 x wheelbase). You can think of it more as the size of a Tesla Model Y.
Rivian’s CEO, RJ Scaringe, had a Steve Jobs moment, revealing “one last thing,” an even more affordable and compact R3. It will include a tri-motor R3X, Rivian’s first high-performance compact EV.
Scaringe announced the R2 was already generating strong interest, with over 68,000 reservations in under 24 hours.
To accelerate the launch, Rivian will build the R2 at its Normal, Illinois facility rather than its new plant in Georgia. The more affordable Rivian R2 is set to begin production in the first half of 2026, and Rivian’s R3 will follow.
Rivian isn’t the only EV maker making a push into cheaper, mass-market electric cars. Tesla is also planning to launch next-gen EVs. Although Tesla initially planned to build them at its new Gigafactory in Mexico, an excerpt from CEO Elon Musk’s biography said the next-gen EVs will be made in Texas.
Kia is launching cheaper mass-market EV
Although Rivian and Tesla are getting all the attention, Kia has big plans to enter the mass market with more affordable EVs.
Kia has found recent success with its first three-row EV9 electric SUV. In the first two months of 2024, Kia sold 2,726 EV9 models in the US, outpacing the EV6 crossover.
|
Kia EV9 Trim |
MSRP (including $1,495 destination fee) |
EPA Est. Range (miles) |
| Light RWD | $56,395 | 230 |
| Light Long Range RWD |
$60,695 | 304 |
| Wind e-AWD | $65,395 | 280 |
| Land e-AWD | $71,395 | 280 |
| GT-Line e-AWD | $73,900 | 270 |
The EV9 starts at $54,900, but the sporty GT-Line will run you nearly $74,000. Meanwhile, Kia looks to get back to its roots with more affordable EVs, including the EV3 and EV4.
Kia revealed the EV3 and EV4 concepts during its first annual EV Day in October. The new EVs are part of Kia’s wide-ranging electric car lineup, priced between $30,000 and $80,000.
The EV3 is expected to be the lowest-priced model, with starting prices around $30,000. Kia’s entry-level EV3 represents the brand’s vision of an all-electric compact crossover. It takes design, tech, and other features from the EV9 and puts it into a smaller, more affordable package.
Kia is expected to launch the EV3 later this year, if not by the end of 2024 or early 2025. If true, that will beat Rivian’s R2 (2026) and Tesla’s next-gen EVs, which are expected in late 2025.
The EV4, Kia’s entry-level electric sedan, is expected to start at around $35,000. Kia describes the EV4 as an “entirely new type of sedan that stands as a symbol of innovation.”
Although the EV4 was also expected to launch by the end of 2024, local media reports claimed Kia VP Woo-Jeong Joo said it would be pushed back to early 2025. Kia’s leader said the move was to launch the models sequentially for maximum success.
Kia has already launched its compact EV5 electric SUV in China with starting prices around $20,000 (149,800 yuan).
Electrek’s Take
Kia has a real opportunity to redefine the brand with the more affordable mass-market EVs like the EV3 and EV4.
Although several cheaper electric cars are on the US market, like the Chevy Bolt EV and Nissan LEAF, both are being phased out in favor of upgraded versions. By launching at least one entry-level model by the end of the year, Kia can capture an early lead in the affordable EV market.
The second entry-level (EV4) electric car, due out early next year, can play a key role in Kia’s transition to EVs with few competitors outside the Tesla Model 3 and Hyundai IONIQ 6.
It’s not quite fair to compare Kia to Rivian and Tesla, as both EV makers are viewed as more “premium” brands. However, with affordable models, Kia can carve its spot in the EV market, a segment it’s known for.
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The all-electric luxury electric SUV is getting significantly cheaper. Lexus launched a new entry-level 2025 RZ trim with starting prices over $10,000 less than last year’s model. And you get just as much driving range.
2025 Lexus RZ electric SUV prices and driving range
Lexus launched its first dedicated EV last year, the RZ electric SUV. Starting at $55,175, the 2024 Lexus RZ 300e has a range of up to 266 miles.
The 2024 RZ 450e AWD, equipped with its dual-moto DIRECT4 system, has a range of up to 196 miles. Prices start at just under $60,000. Both models are offered in Premium or Luxury packages.
Lexus is drastically lowering prices for the 2025 model year. The 2025 Lexus RZ starts at $43,975, and that includes the $1,175 delivery fee.
At under $44,000, prices for the 2025 RZ start at over $10,000 less than last year’s model. The lower price tag comes as Lexus added a new entry-level RZ 300e FWD trim to the lineup.
The 2025 Lexus RZ 300e FWD still has an EPA-estimated 266-mile range (18″ wheels), so despite the lower price, it’s no loss from last year’s model. It’s powered by a 72.8 kWh battery pack from global leader CATL.
Lexus modified the subframe for the FWD model, replacing the rear eAxle from the AWD model. The result is a quieter, smoother drive.
Powered by a 71.4 kWh battery, the 2025 RZ 450e AWD has an EPA-estimated driving range of up to 220 miles (18″ wheels).
| 2025 Lexus RZ model | Starting Price* | EPA-estimated Driving Range |
| RZ 450e AWD | $48,675 | 220 miles |
| RZ 450e Premium AWD w/ 18″ Wheel | $52,875 | 220 miles |
| RZ 450e Premium AWD w/ 20″ Wheel | $54,115 | 196 miles |
| RZ 450e Luxury AWD | $58,605 | 220 miles |
| RZ 300e FWD | $43,975 | 266 miles |
| RZ 300e Premium FWD w/ 18″ Wheel | $48,175 | 266 miles |
| RZ 300e Premium FWD w/ 20″ Wheel | $49,415 | 224 miles |
| RZ 300e Luxury FWD | $53,905 | 266 miles |
The 2025 Lexus RZ is available in three grades. These include the new entry-level model, in addition to the current Premium and Luxury trims.
Inside, the electric SUV has a minimalistic feel with a standard 14″ infotainment with Apple CarPlay and Android Auto support at the center.
You can also opt for the available 10″ head-up display (HUD), Mark Levinson Surround Sound System, and a host of safety features.
The flat platform provides a spacious interior with 37.52″ of rear legroom, nearly as much as the second row of a Ford Explorer (39″).
With the 2025 model arriving at dealerships soon, Lexus is offering closeout prices on 2024 models with up to $18,500 in lease cash discounts. You can use our link to find the best offers on the Lexus RZ at a dealer near you today.
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Environment
‘Political malpractice’ if Trump undoes climate-geared Biden projects, outgoing U.S. energy secretary says
U.S. Secretary of Energy Jennifer Granholm speaks to the media on day five at the UNFCCC COP29 Climate Conference on November 15, 2024 in Baku, Azerbaijan.
Sean Gallup | Getty Images News | Getty Images
A potential decision by Donald Trump to walk back the Biden administration’s climate-geared projects would impact jobs in areas governed by the President-elect’s own party, outgoing U.S. Energy Secretary Jennifer Granholm told CNBC, urging consistency in Washington’s green transition policies.
Referencing the White House’s withdrawal from the Paris Agreement — a 2015 treaty in which nearly 200 governments made non-binding pledges to reduce greenhouse emissions — during Trump’s first mandate, Granholm said the U.S. pressed ahead with projects linked to the green transition that members of Congress wanted to undertake in their districts.
“We are now building all of these projects. We’re building batteries for electric vehicles, we’re building the vehicles, we’re building the offshore wind turbines, we’re building the solar panels. And all of those are factories. And those factories are in districts of members of Congress,” she told CNBC’s Dan Murphy on Friday at the COP29 U.N. climate conference held in Baku, Azerbaijan.
She estimated that 80% of the funding from U.S. President Joe Biden’s legacy bills — the Inflation Reduction Act and the Bipartisan Infrastructure Law — went to U.S. districts represented by Republican leadership.
“It would be political malpractice to undo those opportunities when people are just now getting hired,” she said, stressing benefits to the manufacturing sector and noting that the business community of the world’s largest economy and oil producer now wants a clear course from Washington on its climate policy.
“This isn’t about in [the Paris Agreement], out, shifting back and forth. Let’s have a consistent practice,” she said.
When asked for a response on Granholm’s comments, Karoline Leavitt, a spokeswoman for Trump’s transition team, said the president-elect will “deliver” on the promises he made on the campaign trail.
International focus has now shifted on the shape of the U.S.’ future role in global climate policy, as Trump prepares to take the helm at the White House for a second mandate in January, following a sweeping victory against Democrat candidate Kamala Harris. Trump — who has yet to announce his own pick to lead the U.S. Department of Energy — put hydrocarbons at the front and center of his campaigning agenda, pledging to “end Biden’s delays in federal drilling permits and leases that are needed to unleash American oil and natural gas production.”
The U.S. Energy Information Administration (EIA) in March said that the country already “produced more crude oil than any nation at any time” for the past six years to 2023, averaging a crude oil and condensate production of 12.9 million barrels per day that year — breaking the previous U.S. and global record of 12.3 million barrels per day recorded in 2019, during Trump’s first mandate.
Yet Granholm on Friday stressed that the clean transition is also “unleashed” and will take place regardless of who is leading the White House — and that ignoring climate change risks sacrificing Washington’s position as a frontrunner in the blooming decarbonization industry.
“Why would we take a second, a backseat to an economic competitor like China?” she asked. “They have an economic strategy, they want to be number one. So if we get out of the game, we’re just going to cede that territory all over again. It’s bad strategy for the United States and for workers and for communities across the country.”
As the world braces for the possibility of a second U.S. exit from the Paris Agreement, some climate activists note that the green transition has now gained a different global momentum than during Trump’s first turn at the White House:
“There is no denying that another Trump presidency will stall national efforts to tackle the climate crisis and protect the environment, but most U.S. state, local, and private sector leaders are committed to charging ahead,” Dan Lashof, U.S. director of the World Resources Institute, said in a Nov. 6 statement.
“Donald Trump heading back to the White House won’t be a death knell to the clean energy transition that has rapidly picked up pace these last four years.”
Granholm also identified potential support in Trump’s current entourage, which this week welcomed business tycoon Elon Musk as the president-elect’s choice to head a new Department of Government Efficiency, alongside conservative activist Vivek Ramaswamy:
“His right-hand man, Elon Musk, is somebody who has been strongly in favor of products that … address climate change. Obviously, he’s the founder of Tesla,” Granholm pointed out.
Musk’s environmental stance has come under question over the years, shifting from telling Rolling Stone magazine that “climate change is the biggest threat that humanity faces this century, except for AI” and backing carbon taxes to holding that the world needs hydrocarbon supplies as a bridge to renewable energy.
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