First Drive: We kicked up some SoCal sand off-roading in the new Hyundai IONIQ 5 XRT
Less than a year after its initial reveal, Hyundai officially launched its off-road-friendly IONIQ 5 XRT variant in the US and invited us to Palm Springs to test it out. This is a Hyundai IONIQ through and through, but it features some unique design upgrades, including a new drive mode to help it tackle tougher terrain than its siblings.
The Hyundai IONIQ 5 XRT is the latest variant to come out of HMG’s design lab. It was initially announced in March of 2024, just days after news of a refresh coming to the standard 2025 IONIQ 5, which we also tested out during this trip (check out that review here).
It wasn’t long after Hyundai confirmed the IONIQ 5 XRT that a camouflaged version was spotted in Korea. It presumedly pushed the limits of a new “Terrain Mode” the off-road variant debuts. We certainly did the same last week in the desert outside of Palm Springs where we got an opportunity to take the IONIQ 5 XRTs out of a natural terrain course and kick up some dust.
While this may not be the most rugged BEV out there, it’s most certainly the most off-road-friendly option from Hyundai, and the automaker continues to wow us with unique design elements that are both functional and just plain cool-looking. I’ve shared my complete impressions below.
The 2025 IONIQ 5 XRT is super cool… in the right color
The XRT is the second highest trim level on the Hyundai IONIQ 5 totem pole, below the Limited but above the SEL. As such, several unique features have been added to this new spin on the ever-popular IONIQ 5.
Starting with the exterior, you’ll notice a more rugged look. XRT does stand for “Extreme Rugged Terrain,” after all. The Hyundai team described this design approach as an “armor-like aesthetic.” The front and rear fascias have been equipped with unique protective cladding that goes higher up than a standard BEV for added protection from rocks and other debris.
Of course, Hyundai had to include its parametric pixels in the cladding! This subtle pattern, Hyundai calls “digital camo,” looks different in every lighting scenario (see close-up images above). That cladding was also placed above the wheels, which are unique to the IONIQ 5 XRT. This variant sits on simple yet badass 18″ black wheels with all-terrain tires.
The front features two bright red recovery hooks, while the rear offers higher protection on its corners and an embossed XRT badge. For added off-road capabilities, the IONIQ 5 XRT features a 23mm suspension lift alongside unique tuning, offering an extra inch of ground clearance (7″), a higher approach angle (19.8º), and a higher departure angle (30º).
That being said, this off-road BEV does not have a skid plate or underbelly protection. Instead, the Hyundai team said the added security comes from increased ground clearance. Let’s move into the interior.
As you can see in the image above, the interior of the 2025 Hyundai IONIQ 5 XRT is murdered out and appears a bit sportier than some of its siblings. The doors feature more of the brand’s new digital camo pattern behind an XRT logo, the same of which you’ll find embossed into the front head rests (see images above).
The rest of the interior is comparable to the standard IONIQ 5s, aside from some unique tech upgrades. For instance, the XRT is the first model to come equipped with a new Terrain Mode, which can be activated directly from the steering wheel.
From there, you can choose between sand, snow, and mud. While we saw snow up at elevation in the non-XRT versions of the 2025 IONIQ 5, we were only fortunate enough to trek through a desert course with plenty of compact and loose sand to see what Terrain Mode can really do.
In all honesty, the XRT was a blast to drive. Terrain Mode and the BEV’s H-Trac AWD let me open it up, but I felt in complete control the whole time. I especially had a blast on the course curves with loose sand, as I was able to swing that back end around without feeling like I was about to spin out.
The raised ride height and suspension tuning were noticeable, especially after having just driven the standard IONIQ 5 earlier that day, but it was still a bit of a bumpy ride out on those rocks, especially as a passenger. Here’s some footage of the course:
I feel the overall approach to the XRT is slightly gimmicky because this is undoubtedly an off-road capable BEV, but not something you’d take to Moab. That being said, Hyundai did an excellent job designing it to look rugged and cool.
I was not a big fan of the contrast between the XRT-exclusive cladding and lighter-colored exteriors like Atlas White and Cyber Grey. In my opinion, the darker exteriors complemented the cladding much better. Still, I wish we could have seen the two new Hyundai colors exclusive to the IONIQ 5 XRT – Cosmic Blue Pearl and Ultimate Red Metallic. Unfortunately, those colors weren’t available for our drive since we got some of the first XRT models off the assembly line. Oh well.
Overall, I enjoyed my time behind the wheel of the 2025 IONIQ 5 XRT, but this is a niche variant for a niche audience, similar to the IONIQ 5 N, which I’m also a massive fan of. That being said, I would rather have an N or a Limited trim of the 2025 IONIQ 5 since I’m not much of an off-roader (although if I were, I’d probably go with a Rivian instead).
If you like taking vehicles out in the dust and dirt, the IONIQ 5 XRT could be the BEV you’ve been looking for. I recommend checking it out in person to see the cladding up close and scroll through the terrain modes (if you can drive one out on a course, that would be even better!)
The 2025 IONIQ 5 XRT is now on sale in the US, starting at an MSRP of $55,400 before taxes and fees. It also comes available in two new colors exclusive to the XRT only –
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Twitter CEO Jack Dorsey testifies during a remote video hearing held by subcommittees of the U.S. House of Representatives Energy and Commerce Committee on “Social Media’s Role in Promoting Extremism and Misinformation” in Washington, U.S., March 25, 2021.
Handout | Via Reuters
Block jumped more than 5% on Monday, leading a rally in shares of fintech companies as analysts downplayed the threat of JPMorgan Chase’s reported plan to charge data aggregators for access to customer financial information.
The recovery followed steep declines on Friday, after Bloomberg reported that JPMorgan had circulated pricing sheets outlining potential fees for aggregators like Plaid and Yodlee, which connect fintech platforms to users’ bank data.
In a note to clients on Monday, Evercore ISI analysts said the potential new expenses were “far from a ‘business model-breaking’ cost increase.”
In addition to Block’s rise, PayPal climbed 3.5% on Monday after sliding Friday. Robinhood and Shift4 recorded modest gains.
Broader market momentum helped fuel some of the rebound. The Nasdaq closed at a record, and crypto rallied, with bitcoin climbing past $123,000. Ether, solana, and other altcoins also gained.
Evercore ISI’s analysts said that even if JPMorgan’s changes were implemented, the most immediate effect would be a slight bump in the cost of one-time account setups — perhaps 50 to 60 cents.
Morgan Stanley echoed that view, writing that any impact would be “negligible,” especially for large fintechs that rely more on debit, credit, or stored balances than bank account pulls for transactions.
PayPal doesn’t anticipate much short-term impact, according to a person with knowledge of the issue. The person, who asked not to be named in order to speak about private financial matters, noted that PayPal relies on aggregators primarily for account verification and already has long-term pricing contracts in place.
While smaller fintechs that depend heavily on automated clearing house (ACH) rails or Open Banking frameworks for onboarding and compliance may face real pressure if the fees take effect, analysts said the larger platforms are largely insulated.
WATCH: Congress moves to redraw $3.7 trillion crypto market rules, opening door to Wall Street
The global EV market is still charging ahead. According to new numbers from global research firm Rho Motion, 9.1 million EVs were sold worldwide in the first half of 2025, up 28% compared to the same period last year. But not every region is accelerating at the same pace.
China and Europe are doing the heavy lifting
More than half of the world’s EVs this year have been bought in China. That market hit 5.5 million sales in the first six months of 2025 – a 32% jump year-over-year. Around half of new cars bought in China are now electric.
While some Chinese cities’ subsidies have dried up, Rho Motion expects momentum to pick back up later in the year as more funding is released.
In Europe, 2 million EVs were sold in the first half of the year, up 26%. Battery electric vehicle (BEV) sales also rose 26%, thanks in part to affordable models like the Renault 4 (pictured) and 5 entering the market. Plug-in hybrids (PHEVs) weren’t far behind, growing 27% year-to-date. Chinese automakers are leaning into PHEVs as a way to work around the EU’s new tariffs on BEVs.
Spain is leading the pack with EV sales soaring 85% so far this year. Its generous MOVES III incentive program was extended in April and has kept sales strong. The UK and Germany are also seeing solid growth – 32% and 40%, respectively. France, however, is slumping. With subsidies cut, EV sales there have dropped 13%.
North America is stuck in the slow lane
Things aren’t looking quite as bright in North America. EV sales in the US, Canada, and Mexico are up just 3% so far this year.
Mexico is the one bright spot, with a 20% boost. The US is up 6%. But Canada is down a whopping 23%.
And things could get bumpier. On July 4, Trump signed Congress’s big bill into law, which axes all the Inflation Reduction Act EV tax credits. Those consumer credits for EVs now officially end on September 30.
Just over half of the EVs sold in the US this year qualified for those credits. Rho Motion predicts a rush in Q3 before the subsidies disappear – and a decline in sales after that.
Rho Motion data manager Charles Lester said, “With Trump’s latest cuts in his ‘Big Beautiful Bill,’ the US could struggle to see any growth in the EV market overall in 2025.”
Global EV sales snapshot, H1 2025 vs H1 2024
- Global: 9.1 million (+28%)
- China: 5.5 million (+32%)
- Europe: 2.0 million (+26%)
- North America: 0.9 million (+3%)
- Rest of world: 0.7 million (+40%)
Read more: China breaks records as global EV sales hit 7.2 million in 2025
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Lucid’s electric sedan can drive further, charge faster, and packs more advanced tech than most of the competition. That might explain why it’s leading the segment. The Lucid Air remained the best-selling luxury EV sedan in the US after widening its lead in the Q2.
The Lucid Air is America’s best-selling luxury EV sedan
The 2025 Lucid Air Pure arrived as the “World’s most efficient car” with an EPA-estimated range of 420 miles and a record 146 MPGe.
It just set a new Guinness World Record last week for the longest journey by an electric car after travelling 749 miles (1,205 km) on a single charge.
That record was set in the range-topping Lucid Air Grand Touring model, which is rated for up to 512 miles of EPA-estimated range. On the WLTP scale, it’s rated at 597 miles (960 km). Either way, it still crushed the estimates.
According to second-quarter sales data, released by Kelley Blue Book on Monday, the Lucid Air is still America’s best-selling luxury EV.
Lucid sold 2,630 Air models in Q2, up 10% from the previous year. Through the first half of 2025, Lucid Air sales are up 17% with 5,094 units sold.
Tesla, on the other hand, only sold 1,435 Model Ss during the quarter, 71% fewer than it did in Q2 2024. Tesla Model S sales in the US are down 70% through the first half of the year at 2,715.
Although Porsche Taycan sales were up 32% with 1,064 models sold, the significantly upgraded 2025 model year was expected to see even more demand. Porsche has 2,083 Taycans in the US this year, up just 1% from 2024.
Other luxury EV sedans, such as the BMW i5 (1,434), i7 (820), and the Mercedes EQS (498), experienced steep double-digit sales declines year-over-year.
And it’s not just electric luxury sedans. The Lucid Air is currently outselling many gas-powered vehicles in its segment.
Lucid’s first electric SUV, the Gravity, is also rolling out. Although only five were sold in the second quarter, Lucid is quickly scaling production. Lucid aims to produce 20,000 vehicles this year, more than double the roughly 9,000 it built in 2024.
Earlier today, Lucid’s interim CEO, Marc Winterhoff, confirmed during an interview with Bloomberg that the company expects higher Gravity output in the second half of the year.
The interview was at the grand opening of Panasonic’s new battery cell plant in De Soto, Kansas. Winterhoff said Lucid will start using new cells from the facility, but not until next year.
Lucid’s CEO stressed the importance of establishing a local supply chain, as policy changes under the Trump Administration are taking effect. Lucid and Panasonic are collaborating to localize EV materials, such as graphite. Last month, Lucid secured a multi-year supply agreement with Graphite One for US-sourced Graphite.
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