The European edition of the Lexus RZ now has a new RZ550e variant with 402 horsepower. The electric tiny luxury SUV also features long-delayed steer-by-wire functionality and faux manual shifting. Lexus has yet to confirm whether these updates will apply to models available in the United States, where they would most likely apply to the 2026 model year. Since its introduction for the 2023 model year, the RZ has been a relatively drowsy EV, but Lexus is ready to change that. The luxury division’s European arm just introduced an improved RZ with greater power and fascinating new technology. The first is the new RZ550e model, which is an RZ first and features F Sport badges. Its 402 horsepower dual-motor all-wheel-drive powertrain outperforms the previous RZ450e’s 308 horsepower and the RZ300e’s 201 horsepower single-motor. Even the single-motor base model sees a tiny increase in output to 221 horsepower, while the non-F Sport dual-motor powertrain gains 376 horsepower, earning it the new RZ500e moniker. Steer-by-wire is now available on the updated RZ. The more we turned the yoke (yes, a yoke, not a steering wheel) on the car we drove at the RZ launch two years ago, the more weirdly responsive it became. Lexus never presented the option, so it looks like the engineers agreed. Instead, they tried to improve it, and they claim that by increasing the range of motion to 200 degrees, they addressed those concerns. The new RZ also has Lexus’ “Interactive Manual Drive,” which is designed to replicate an eight-speed manual transmission. There aren’t many specifics. However, this software package includes visual and audible cues. It’s worth noting that the sound complements an electric vehicle’s natural acoustics rather than replicating a gas engine. The battery pack has a little more power, with an estimated useable capacity of 69.3 kWh (up from 64.3 kWh currently). Nonetheless, Lexus claims that the most recent model enhances range by up to 100 kilometers on the WLTP cycle, or approximately 53 miles when using EPA methods. Furthermore, the RZ’s current EPA range ratings of 196 to 266 miles suggest that it might utilize more range. The replacement of the current 6.6-kW onboard charger with a new 22-kW unit should result in faster Level 2 AC charging. The 2026 model year is a reasonable prediction, but there is no official word on when any of these upgrades will be applied for the RZ sold in the United States. Let us see.
