Jeep reveals its first ever EV, the $72,000 Wagoneer S
Jeep's new EV reveal comes as the automaker and Big Three rivals throttle back EV plans.
Jeep revealed new details for its first-ever electric vehicle, the upcoming Wagoneer S SUV, on Thursday night. The debut comes as Jeep parent Stellantis (STLA) and Big Three rivals GM (GM) and Ford (F) reevaluate their EV game plans.
The near-production version of the Wagoneer S mimics the popular Jeep Grand Cherokee's clean body lines and front fascia of Jeep’s trademark waterfall grill but features a lower roofline and sleeker overall shape, which Jeep says is needed for overall aerodynamic efficiency.
Under the hood, or body in this case, are two electric drive motors (EDMs) that integrate the motor, gearing, and power electronics in one unit. The two motors combine for 600 horsepower and 617 lb-feet of torque, resulting in a 3.4 second 0-60 mph time. The EDMs, along with the 100 kWh battery pack and Jeep-exclusive Selec-Terrain drive modes, give the Wagoneer S 300 miles of range on a full charge.
New Jeep CEO Antonio Filosa believes the Wagoneer is ready to take on rivals like the Rivian R1S, Tesla Model X, and Kia EV9 full-size EV SUV.
"It's unbelievably well engineered," he said, adding that it has the best specs in the market, from range to power and 0-60 performance.
The Wagoneer S will utilize Stellantis's STLA Large Platform, which is the company’s EV platform for large vehicles. The use of single platforms allows Stellantis to build brand-specific EVs in a cost-effective way.
Cost efficiency is important as the Big Three and rivals like Volkswagen and Toyota blaze their EV paths. GM and Ford have each pushed back on their aggressive EV rollouts in the past quarters, and even Stellantis has said the company will slow down or ramp up production of EVs depending on consumer demand.
One way to boost EV demand is by cutting prices, as both Ford and Tesla have done most recently, and also making sure EVs fall under the requirements of the federal EV tax credit.
Jeep said high-spec Wagoneer S Launch Edition models would start at $71,995, including destination, a bit below the $80,000 some expected. This means it would eligible for the EV tax credit; however, some Republicans, including GOP presumptive nominee Donald Trump, are threatening to repeal the credit.
Filosa added that the tax credit going away isn't a concern but it is part of their calculations.
"Obviously, we want to get it," he said, but with lower-trim versions of the Wagoneer S on the way, Filosa believes the Wagoneer S will be competitive, even without the tax credit.
"Whatever the new president of the United States wants to decide, we'll be open to compete as the other competitors."
Tax credit notwithstanding, Stellantis CEO Carlos Tavares also told Yahoo Finance in February that the company is fully invested for its EV buildout through 2027 and can wait until the end of this year to determine further investments for the 2028-2035 timeline, indicating the company has flexibility in making its large cap-ex commitments.
While the Jeep brand in particular is thriving, with strong sales of its plug-in hybrid 4xe Jeep Wrangler and Grand Cherokee vehicles, the company and Tavares still believe EVs are the future for some buyers.
Tavares said this week at the Bernstein Strategic Decisions Conference that the company would release a $25,000 Jeep EV in the US “very soon” and has said the cheap Citroen EV that was released in Europe is already being made at a profit.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
