Toyota USA has refreshed its RAV4 for 2026, and, in a significant step forward for efficiency, Toyota has axed the non-hybrid version of the vehicle. The RAV4 will now only be available in HEV and PHEV versions starting in the 2026 model year.
However, in an act of greenwashing reminiscent of many things Toyota has done before, it’s confusingly calling its vehicles “100% electrified” – despite that every single RAV4 includes a gas engine.
The improvements include new looks and trim lines, including an outdoorsy Woodland model (like the bZ just got) and a higher-performance “GR SPORT” model (though, we must remind everyone, that SUVs are not sportscars and will never be sportscars), and higher power from both PHEV and HEV models.
The PHEV model also boasts improved range, bumped from 42 miles to 50 miles – still lower than we’d typically consider worthy of coverage on Electrek, but the number is at least usable to keep the average driver on electric power for most of their daily driving (if they bother to plug it in).
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Some trims will have DC fast charging, and you’ll be able to charge from 10-80% in 30 minutes.
Notably, the RAV4 no longer includes any option for a non-hybrid powertrain. All trims are either hybrid or plug-in hybrid. Previously, it had been anticipated that an EV model might join the lineup, but it looks like Toyota is just sticking with the newly-renamed bZ model for that purpose.
Toyota calls its new RAV4 options “highly efficient electrified powertrains,” but did not specify anticipated EPA mileage numbers for the HEV model, or for the PHEV when operating on gas power. The current RAV4 hybrid gets 39mpg (that’s about 10mpg better than the non-hybrid), and we would imagine something in that ballpark for the updated model.
The 2026 RAV4 will be available in Toyota dealerships across the US “later this year.” Pricing has not yet been announced.
Electrek’s Take
But the real issue here is the use of the word “electrified,” and specifically, “100% electrified.”
Toyota has a longhistory of deceptive advertising when it comes to its electrification efforts. Its lies have gotten it in trouble before, both in Norway and in the US.
So its use of the word “electrified” should be looked at with some skepticism, since the company has used it before to confuse consumers into thinking that its vehicles are more efficient than they really are. For some previous coverage on that, see the FTC complaint filed against Toyota over its false electrification claims.
In this case, Toyota has upped the ante, not just claiming that its vehicles are electrified, but “100% electrified.”
There are a lot of terms that get used confusingly in the EV industry, oftentimes purposefully, in order to greenwash companies’ efforts. EV, PHEV, EREV, FCEV, HEV, BEV, electrified, all-electric, and so on.
But one thing that has heretofore been reserved for models that do not include a gasoline engine is any variation on “all-electric,” “100% electric,” “fully electric” or the like.
So, moving from “electrified” to “100% electrified” certainly seems like intentional phrasing by Toyota here. “Electrified” was already questionable, but “100% electrified” is well over the line.
So despite that we should be happy about a step-change improvement in powertrain availability on the RAV4, and the elimination of the non-hybrid model, Toyota just had to play one of its tricks and remind us why they’re the greatest enemy of electrification in the auto industry (well… save one).
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Global EV sales are still riding high, with 1.6 million EVs sold in July 2025, according to new data from global research firm Rho Motion. That’s up 21% from July last year, even though sales dipped 9% from June. It brings total EV sales for the first seven months of the year to 10.7 million – up 27% compared to the same period in 2024.
China stays on top
China continues to dominate, with 6.5 million EVs sold year-to-date, accounting for over half of all global EV sales. BEVs are still the top choice, with sales up 40% this year. Plug-in hybrids (PHEVs) didn’t fare as well, with domestic sales down 15% month-over-month and 10% year-over-year.
Even though Chinese EV sales dropped 13% in July from June, EVs made up over 50% of all passenger car sales for the third month in a row. The government is helping keep momentum going with another round of Q3 funding for its EV trade-in scheme, and a final 2025 round is expected in October.
Europe’s EV momentum is speeding up
Europe saw a 30% year-to-date jump in EV sales, reaching 2.3 million units. Germany and the UK are leading the pack – Germany’s up 43%, and the UK is up 32%. But France posted just a 9% year-over-year gain in July and is still down 11% for the year.
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To help turn things around, France is revamping its EV leasing program for low-income households starting September 30, aiming to support more than 50,000 purchases.
Meanwhile, Italy is the dark horse of 2025. Thanks to fresh incentives totaling around $700 million, EV sales are up 40%, and the country is quickly catching up to its neighbors. EV market share in Italy now stands at 11%, compared to 27% in Germany and over 30% in the UK.
North America stalls out except for one short-term boost
North America is lagging, with just a 2% bump in EV sales year-to-date. In the US, that’s partly due to policy uncertainty and tariffs. Automakers took a multi-billion-dollar hit in Q2, although some of that was offset by reduced requirements to buy zero-emission vehicle credits.
A spike in demand is expected in Q3, as buyers rush to take advantage of the Inflation Reduction Act’s EV tax credit before it expires on September 30, but a cooldown is then anticipated.
Some automakers are shifting their EV strategies: Ford recently announced a new “Universal EV Platform” and plans to launch a $30,000 midsize electric pickup with lithium iron phosphate (LFP) batteries by 2027.
And on the trade front, the US has inked deals with South Korea, Japan, and the EU to impose a 15% tariff on imported cars.
The bottom line
Chart: Rho Motion
Global EV sales are still charging ahead, even if the road is bumpy in some regions. China’s holding steady, Europe’s revving up, and North America’s waiting to see what happens next. Rho Motion data manager Charles Lester said, “Despite regional variations, the overall trajectory for EV adoption in 2025 remains strongly upward.”
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Another monthly subscription? Some Volkswagen EV drivers will now need to pay extra to unlock their vehicle’s full potential.
Volkswagen has put performance behind a paywall, at least for ID.3 drivers in the UK. The Volkswagen ID.3 Pro and Pro S are now listed with 201 hp on the UK website.
To unlock the vehicle’s full performance of 228 hp, drivers will now need to pay extra. You can choose from a monthly subscription, starting at £16.50 ($22) per month, or you can opt for a one-time lifetime fee of £649 ($880).
However, the one-time fee is attached to the vehicle, not the buyer. So if it’s sold, the upgrade goes with it. As Auto Express pointed out, the monthly payment is nearly three times that of a standard Netflix membership.
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Although the performance upgrade locks the extra power behind a paywall, Volkswagen said it doesn’t affect range.
Volkswagen ID.3 (left) and ID.4 (right)
Volkswagen isn’t the first, and likely not the last, to make drivers pay for their vehicles’ full potential. Remember when BMW tried to charge $18 a month for heated seats and other features in 2022?
Yeah, that didn’t go over so well. BMW has since dropped the subscription. Other brands, including Polestar, offer similar performance upgrades.
Volkswagen ID.3 GTX (Source: Volkswagen)
Will Volkswagen try to charge EV drivers in the US or other parts of Europe extra for performance? Given the backlash from BMW, it’s not likely. We’ll see how it goes over in the UK first.
The company is gearing up to launch a new series of entry-level EVs, starting with the ID.2 next year. An SUV version of the ID.2 is scheduled to launch shortly after, followed by the production version of the ID.1, which is set to arrive in 2027. Volkswagen is also considering a “mini Buzz” that could replace the Touran, but nothing has been confirmed.
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Now, three years later, he’s chasing where the real money is: Enterprise.
Last week’s rollout of GPT-5, OpenAI’s newest artificial intelligence model, was rocky. Critics bashed its less-intuitive feel, ultimately leading the company to restore its legacy GPT-4 to paying chatbot customers.
But GPT-5 isn’t about the consumer. It’s OpenAI’s effort to crack the enterprise market, where rival Anthropic has enjoyed a head start.
One week in, and startups like Cursor, Vercel, and Factory say they’ve already made GPT-5 the default model in certain key products and tools, touting its faster setup, better results on complex tasks, and a lower price.
Some companies said GPT-5 now matches or beats Claude on code and interface design, a space Anthropic once dominated.
Box, another enterprise customer, has been testing GPT-5 on long, logic-heavy documents. CEO Aaron Levie told CNBC the model is a “breakthrough,” saying it performs with a level of reasoning that prior systems couldn’t match.
Behind the scenes, OpenAI has built out its own enterprise sales team — more than 500 people under COO Brad Lightcap — operating independently of Microsoft, which has been the startup’s lead investor and key cloud partner. Customers can access GPT models through Microsoft Azure or go directly to OpenAI, which controls the API and product experience.
Still, the economics are brutal. The models are expensive to run, and both OpenAI and Anthropic are spending big to lock in customers, with OpenAI on track to burn $8 billion this year.
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Winning over enterprise
GPT-5 is significantly cheaper than Anthropic’s top-end Claude Opus 4.1 — by a factor of seven and a half, in some cases — but OpenAI is spending huge amounts on infrastructure to sustain that edge.
For OpenAI, it’s a push to win customers now, get them locked in and build a real business on the back of that loyalty.
Cursor, still a major Anthropic customer, is now steering new users to OpenAI. The company’s co-founder and CEO Michael Truell underscored the change during OpenAI’s launch livestream, describing GPT-5 as “the smartest coding model we’ve ever tried.”
Truell said the change applies only to new sign-ups, as existing Cursor customers will continue using Anthropic as their default model. Cursor maintains a committed-revenue contract with Anthropic, which has built its business on dominating the enterprise layer.
As of June, enterprise makes up about 80% of its revenue, with annualized revenue growing 17x year-over-year, said a person familiar with the matter who requested anonymity in order to discuss company data. The company added $3 billion in revenue in just the past six months — including $1 billion in June alone — and has already signed triple the number of eight- and nine-figure deals this year compared to all of 2024, the person said.
Anthropic said its enterprise footprint extends far beyond tech.
Claude powers tools for Amazon Prime, Alexa, and AIG, and is used by top players in pharma, retail, aviation, and professional services. The company is embedded across Amazon Web Services, GCP, Snowflake, Databricks, and Palantir — and its deals tend to expand fast.
Average customer spend has grown more than fivefold over the past year, with over half of business clients now using multiple Claude products, the person said.
Excluding its two largest customers, revenue for the rest of the business has grown more than elevenfold year-over-year, the person said.
Even with that broad reach, OpenAI is gaining ground with enterprise customers.
GPT-5 API usage has surged since launch, with the model now processing more than twice as much coding and agent-building work, and reasoning use cases jumping more than eightfold, said a person familiar with the matter who requested anonymity in order to discuss company data.
Enterprise demand is rising sharply, particularly for planning and multi-step reasoning tasks.
GPT-5’s improvement
GPT-5’s traction over the past week shows how quickly loyalties can shift when performance and price tip in OpenAI’s favor.
AI-powered coding platform Qodo recently tested GPT-5 against top-tier models including Gemini 2.5, Claude Sonnet 4, and Grok 4, and said in a blog post that it led in catching coding mistakes.
The model was often the only one to catch critical issues, such as security bugs or broken code, suggesting clean, focused fixes and skipping over code that didn’t need changing, the company said. Weaknesses included occasional false positives and some redundancy.
Vercel, a cloud platform for web applications, has made GPT-5 the default in its new open-source “vibe coding” platform — a system that turns plain-English prompts into live, working apps. It also rolled GPT-5 into its in-dashboard Agent, where the company said it’s been especially good at juggling complex tasks and thinking through long instructions.
“While there was a lot of competition already in AI models, Claude was just owning this space. It was by far the best coding model. It was not even close,” said Malte Ubl, CTO of Vercel. “OpenAI was just not in the game.”
That changed with GPT-5.
“They at least caught up,” Ubl said. “They’re better at some stuff, they’re worse at other stuff.”
He said GPT-5 stood out for early-stage prototyping and product design, calling it more creative than Claude’s Sonnet.
“Traditionally, you have to optimize for the new model, and we saw really good results from the start,” he said about the ease of integration.
JetBrains has adopted GPT-5 as the default in its AI Assistant and in Kineto, a new no-code tool for building websites and apps, after finding it could generate simple, single-purpose tools more quickly from user prompts. Developer platform Factory said it collaborated closely with OpenAI to make GPT-5 the default for its tools.
“When it comes to getting a really good plan for implementing a complex coding solution, GPT-5 is a lot better,” said Matan Grinberg, CEO of Factory. “It’s a lot better at planning and having coherence over its plan over a long period of time.”
Grinberg added that GPT-5 integrates well with their multi-agent platform: “It just plays very nicely with a lot of these high-level details that we’re managing at the same time as the low-level implementation details.”
Pricing flexibility was a major factor in Factory’s decision to default to GPT-5, as well.
“Pricing is mostly what our end users care about,” said Grinberg, adding that cheaper inference now makes customers more comfortable experimenting. Instead of second-guessing whether a question is worth the cost, they can “shoot from the hip more readily” and explore ideas without hesitation.
Anton Osika, co-founder and CEO of Lovable, a company that builds an AI-powered tool that lets anyone create real software businesses without writing a single line of code, said his team was beta testing GPT-5 for weeks before it officially launched and was “super happy” with the improvement.
“What we found is that it’s more powerful. It’s smarter in many complex use cases,” Osika said, adding that the new model is “more prone to take actions and reflect on the action it takes” and “spends more time to make sure it really gets it right.”
Box‘s Levie said the biggest gains for him showed up in enterprise workflows that have nothing to do with writing code. His team has been testing the model for weeks on complex, real-world business data — from hundred-page lease agreements to product roadmaps — and found that it excelled at problems that tripped up earlier AI systems.
Levie added that for corporate use, where AI agents run in the background to execute tasks, those step-change improvements are critical, and can turn GPT-5 into a real breakthrough for work automation.
“GPT-5 has performed unbelievably well — certainly OpenAI’s best model — and in many of our tests it’s the best available,” he said.
— CNBC’s Kevin Schmidt contributed to this report.