For years, the Prius was the face of Toyota‘s green ambitions — the car that made hybrid driving feel mainstream. Now a fully electric SUV just quietly pushed it out of the top spot, and Toyota says there’s more disruption coming.
The bZ outsold the Prius in Q1 2026 — and that’s just the opening act. A mystery electric SUV, built on American soil, is already in development and could arrive as early as 2027.
The sales flip nobody predicted this fast
Toyota’s bZ moved 10,029 units in Q1 2026, up from 5,610 the year before — a 79% jump that few analysts saw coming. Over that same stretch, the Prius dropped from 16,653 to 9,737 units, a fall of roughly 42%. That’s a dramatic reversal in less than 12 months.
What makes this more interesting is the context. EV tax credits were scrapped last year. The broader industry has been hedging on electrification. Yet Toyota’s battery-electric sales accelerated anyway, suggesting that consumers are starting to choose the bZ on its own merits — not because of a government nudge.
Seven EVs by 2027 — and one is still a secret
Toyota currently sells four electric models in North America — the bZ, bZ Woodland, C-HR, and Lexus RZ — all imported. That picture changes fast. A fully electric Lexus ES arrives this month. The all-electric 2027 Highlander follows in late 2026, built in Kentucky with batteries from North Carolina. Then comes the mystery.
According to a Bloomberg report, a second US-built electric SUV is already in development, also slated for the Kentucky plant, with production starting in 2027. Toyota hasn’t confirmed the name, size, or where it sits in the lineup. But they’ve confirmed it exists — and that it’s coming faster than most buyers realize.
| Metric | Detail |
|---|---|
| bZ Q1 2026 sales | 10,029 units (+79% YoY) |
| Prius Q1 2026 sales | 9,737 units (−42% YoY) |
| Hybrid share of Toyota NA sales (March 2026) | 55% (up from 49%) |
| Toyota EVs planned for US by 2027 | 7 models |
| US investment committed | $10 billion |
| Kentucky plant expansion | $1 billion (with Indiana) |
| First US-built Toyota EV | 2027 Highlander EV, assembled in Kentucky |
Toyota’s executive said “Tesla killers” out loud
Mark Templin, executive vice president and COO at Toyota Motor North America, didn’t soften his language when describing the upcoming lineup. He called the new EVs “Tesla killers” and laid out a very specific theory: Toyota wants back the buyers who loved the Prius, moved to Tesla, and might now be ready to return. He personally drove three unreleased battery-electric models in Japan and came back calling them “fantastic.”
That’s a bold claim from a company whose first serious EV — the bZ4X — launched with a recall and underwhelmed critics. But the updated bZ has clearly found its footing. The real story is whether the mystery SUV, and the Highlander EV, can replicate that momentum at a larger scale and go head-to-head with Model Y territory.
Hybrids are still carrying the weight — but for how long
Here’s the catch: hybrids made up 55% of Toyota’s North American sales in March 2026, and factories are still running at full capacity with buyers on waiting lists. Toyota knows this. The $10 billion US investment isn’t a pivot away from hybrids — it’s a bet that both technologies can grow simultaneously.
The smarter read is that Toyota is using hybrid dominance as a financial cushion while it scales EV infrastructure. Once the Highlander EV and the mystery SUV arrive, the lineup will cover enough ground — from affordable commuters to three-row family haulers — to credibly challenge Tesla’s grip on the mainstream EV buyer. Whether buyers follow is the only question left to answer.
I think this is one of the most quietly significant shifts in the American auto market right now. If you’re in the market for an EV or a hybrid in the next 12 months, Toyota’s upcoming lineup deserves a serious look before you sign anything. The pace of change here is faster than the dealership window stickers let on — and the mystery SUV might be the most important Toyota nobody’s talking about yet.
