Jeep's New $25,000 Model: Everything We Know So Far

Jeep, the company known for its premium, rugged SUVs, isn't the first brand that comes to mind when one thinks of affordable electric cars. However, according to Carlos Tavares, the CEO of Stellantis (the parent company of Jeep), the automaker is readying the launch of a $25,000 EV in the U.S. market "very soon." According to The Wall Street Journal, Mr. Tavares made the comments about this affordable Jeep EV during a Bernstein investor conference in New York, where other senior Stellantis executives are also visiting in connection with the launch of the Wagoneer S, Jeep's upcoming all-electric SUV.

While Tavares stopped short of divulging any further information surrounding this upcoming affordable EV, he did indicate that Jeep will use the expertise of other Stellantis brands — particularly Citroën, which already sells the Citroën e-C3 EV for about 20,000 euros in European and Asian markets. It is very likely that this upcoming, affordable Jeep EV will share parts from these vehicles. 

It is pertinent to note that Jeep already sells a relatively affordable EV — the Jeep Avenger EV — in other markets. However, with a price tag of around $38,000, even the Jeep Avenger is way too expensive, and it wouldn't be economically viable for the company to sell the same vehicle for $25,000 in the United States. Given that Mr. Tavares has indicated that the launch of this EV will happen "soon," it is safe to assume that it is in an advanced stage of development.

If Jeep is able to deliver on the promise of a $25,000 EV in the U.S., it would be a major statement for the country's EV market where prices of even the most affordable all-electric models hover around the $30,000 mark. At the time of writing, the most affordable EVs sold in the U.S. include the Nissan Leaf, the Nissan Ariya, and the Hyundai IONIQ 6. The arrival of Jeep's $25,000 EV could also trigger a price war, leading to companies further slashing the prices of their EVs in order to remain competitive.

Given Jeep's positioning as a premium SUV brand, it would be interesting to see how the automotive market responds to an affordable EV from the company. That being said, Jeep's decision to launch an affordable EV in the U.S. is a strategy that several other players in the market are also implementing. Tesla, for example, has already indicated that it could offer more affordable EVs for U.S. consumers, although the company has not revealed anything more than that. 

Ford is also drawing up plans for more affordable EVs, signifying a shifting trend toward more affordable EV cars in the United States. Jeep's decision to go for an affordable EV could also be the result of feedback from its dealers, which have reportedly complained that the company doesn't have more affordable vehicles in its lineup.