Stellantis plans to introduce a $25,000 all-electric Jeep in the U.S. “very soon” to appeal to mainstream consumers amidst slower-than-expected EV adoption, CEO Carlos Tavares announced on Wednesday.
Tavares shared limited details about the forthcoming vehicle, noting it will be priced around $25,000 in the U.S., similar to the pricing of the Citroen e-C3 SUV, which starts at 23,300 euros (approximately $25,200) in Europe.
“Just as we introduced the 20,000 Euro Citroen e-C3, we will have a $25,000 Jeep very soon,” Tavares stated at a Bernstein investor conference. “We’re leveraging our global expertise to make this happen seamlessly across Stellantis’ engineering world.”
Currently, Stellantis offers an all-electric version of the Avenger SUV in Europe, starting at about 35,000 euros (around $37,800). This model is not available in the U.S., where the company has focused on plug-in hybrid electric Jeep vehicles.
Introducing an EV priced around $25,000 has been a long-term goal for automakers such as Stellantis, Tesla, and others. The need for such a vehicle has become more urgent as Chinese automakers like BYD and Nio expand their sales of affordable EVs outside of China.
“If you ask me what an affordable BEV is, I’d say 20,000 euros in Europe and $25,000 in the U.S.,” Tavares explained. “Our mission is to bring a safe, clean, and affordable BEV to the U.S. for $25,000. We’ll make it happen.”
Jeep’s first all-electric vehicle for the U.S. is expected to be the large Wagoneer S SUV, set to debut later this year. The company is scheduled to officially reveal the vehicle on Thursday in New York. An off-road vehicle inspired by the Jeep Wrangler, called the Recon, is also anticipated soon.
Tavares mentioned that Stellantis aims to achieve cost parity between its all-electric vehicles and traditional internal combustion engine vehicles within the next “three years, max” to better compete with the increasing influx of affordable EVs from China.
“It’s a very challenging, chaotic, and Darwinian period,” Tavares remarked, referring to the Chinese competitors, the EV transition, and potential industry consolidation. “We are in the storm, and this storm will last for a few years.”
His comments come amid growing geopolitical tensions regarding China-made EVs in the U.S., Europe, and other regions. Many industry insiders worry that cheaper China-made vehicles will flood the markets, undercutting domestically produced EVs.
Tavares also noted that tariffs, such as those the U.S. is implementing against Chinese EVs, might delay their entry into the U.S. market but will not entirely prevent it.
“Time helps, but you cannot stop the competition,” Tavares said. “Shielding yourself behind a protectionist bubble won’t make you competitive. … If your strategy is to shrink and stay inside the bubble, it will buy you time, but it will certainly limit your future.”
The Biden administration’s recently announced 100% tariff on EVs imported from China, up from a current import tax of about 25%, could still allow Chinese models to undercut domestic prices. Additionally, it leaves loopholes for imports from Chinese automakers produced in other countries, such as Mexico, and does not address current or future gas-powered vehicles imported from China.
