The competition for the first affordable American electric vehicle (EV) is heating up, with Ford currently leading the pack through its innovative “skunkworks” initiative. Meanwhile, Tesla is struggling after officially denying the cancellation of its much-anticipated $25,000 model. In an unexpected turn, Jeep has now entered the arena, vowing to bring an affordable electric SUV to U.S. consumers within a few years.
Stellantis reaffirmed its plans for this budget-friendly EV during an investor event on Thursday, following CEO Carlos Tavares’s initial suggestion of the vehicle in May. The new model, named the Renegade, will be based on one of Jeep’s existing subcompact SUVs, and it is expected to debut “very soon,” with a latest rollout date set for 2027. The exact production location of the Renegade EV remains unclear, which is crucial since both the vehicle and its battery must be manufactured domestically to take advantage of available subsidies. Furthermore, it is not yet known how this new model will compare to the existing Renegade, which has a starting price just above $30,000. There is speculation that the Renegade EV may also be adapted from the Avenger, Jeep’s smallest SUV available abroad, which is offered in both all-electric and plug-in hybrid variants.
Regardless of its final form, the Renegade EV will be part of a broader strategy aimed at boosting Jeep’s sales to one million vehicles annually in the U.S. by 2027 and 1.5 million globally. This ambition involves expanding the lineup from 10 to 13 models, including new electric vehicles like the Recon and Wagoneer S. The product range will encompass a variety of powertrains, including traditional combustion engines and full electric options.
Pricing will be a key factor in the success of Jeep’s affordable EV, as cost has emerged as one of the major barriers to electric vehicle adoption. So far, mass-market EVs have primarily targeted the premium segment, which is becoming increasingly saturated. Complicated tax credit programs designed to support EV purchases have also fallen short of expectations.
Affordable electric vehicles are gaining significant political importance in the United States, particularly in the face of the rapid growth of the Chinese auto industry, known for producing high-quality yet inexpensive EVs. Many stakeholders, including members of the federal government and industry leaders like Tesla’s Elon Musk, view the rise of Chinese EVs as a serious threat to the domestic market. To protect U.S. manufacturers, the government is considering imposing substantial trade barriers, including a potential 100 percent import tariff on Chinese vehicles. These measures are expected to remain in place until the American automotive industry can effectively respond, and Jeep appears committed to being a key player in this initiative..
