In a July 2024 appearance on the Decoder podcast, Rivian CEO RJ Scaringe told host and The Verge editor-in-chief Nilay Patel that the supposed slowdown in EV growth is a result of an "extreme, truly extreme lack of choice," noting that buyers do not have many choices at an "affordable" price point besides two compelling products from Tesla.
"If you want to spend less than $50,000 for an EV, I’d say there’s a very, very small number of great products," Scaringe said. "Tesla Model 3 and Model Y are highly compelling, great products, but they don’t have a lot of competition."
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Although Scaringe recognized the Model 3 and Y as quality cars, he noted that much of its competition are copycats that do not offer much besides looking like Teslas; essentially treating the Model Y as a one-size-fits-all solution.
"So maybe they wanted a true SUV and got a very car-like crossover with the Model Y," Scaringe said. "Maybe they wanted something that was a little bit bigger, but they got something that was more like the Model Y. Maybe they didn’t love the Tesla look, but it’s the best product, so they took the Model Y."
South Korean automaker Hyundai (HYMTF) knows that cars, especially EVs, do not have to be boring to offer something that sets itself apart from its competitors, as its latest model edges itself as a threat against Tesla's bestseller.
2025 Hyundai IONIQ 5 Limited
Hyundai
Hyundai's new IONIQ 5
In an announcement on September 3, Hyundai unveiled a refreshed version of its edgy, futuristic-designed IONIQ 5, featuring many new features that place it even more prominently on Tesla's radar.
Apart from the refreshed body, the most apparent change to the IONIQ 5 is the bigger batteries, which enable longer trips between charges.
Standard-range models that previously had a 58 kWh battery now have a 63 kWh battery, unlocking up to 240 miles of range. On the other hand, long-range models have an upgraded 84 kWh battery that is expected to enable over 310 miles of range.
But in light of the current infrastructure-driven nightmare that is EV charging rife with "charger hogs," the IONIQ 5 is the first Hyundai EV that comes standard with the "Tesla plug;" or the North American Charging Standard (NACS) port. While all new and refreshed Hyundai EVs will feature the new port starting in Q4 2024, the IONIQ 5 will be the first to take advantage of charging at more than 17,000 Tesla Superchargers.
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Cooler, smarter design
While the new IONIQ 5 features enhanced styling with new front and rear bumpers, a rear spoiler and new wheels that enhance aerodynamics, many of its new features are meant to enhance the user experience.
While Tesla relies heavily on a minimalist design that relegates all functions to a huge touch screen in the center of the "dashboard," Hyundai designers know that its customers will not fare well with controls that do not belong in a "normal" car.
Although a 12.3-inch screen featuring a "next-gen infotainment system" with wireless Apple CarPlay and Android Auto sits front and center on the dashboard, Hyundai has redesigned the climate control and added buttons for frequently used functions.
2025 Hyundai IONIQ 5 XRT
Hyundai
Meet the XRT
The addition of a new rugged, off-road-inspired model called the IONIQ 5 XRT sets it apart even further from "mundane" EVs like the Tesla Model Y.
According to Hyundai, the XRT slots in between the "regular" car and the Porsche-beating IONIQ 5N and is "designed to appeal to customers who want to play in the dirt and have all-electric adventures."
The XRT boasts a shopping list of off-road modifications, including XRT-exclusive front and rear bumpers, side skirts, and unique 18-inch wheels. Compared to the regular IONIQ 5, the XRT is given an inch lift for extra ground clearance and features a cool digital camouflage finish on the bumpers.
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A sales champion
According to the most recent data released by Kelley Blue Book and Cox Automotive, the Hyundai IONIQ 5 ranks among the bestselling EVs, placing itself as the fourth highest-selling EV after Tesla's Model Y, Model 3, and Ford's Mustang Mach-e in the second quarter of 2024.
However, new changes for 2025, apart from the physical changes to the car, would help Hyundai establish its IONIQ 5's bestseller status in concrete terms and provide buyers who are disillusioned by Elon Musk's aura over Tesla and his controversial views on a laundry list of politically sensitive topics.
The 2025 IONIQ 5 is set to be Hyundai's first US-made model at Hyundai's newest factory, the multi-billion-dollar Metaplant America in Bryan County, Georgia.
Hyundai said EVs built at its new Georgia plant would be eligible for a $3,750 IRA tax credit, which can be used to purchase the car. Once it begins building batteries at the plant, Hyundai expects the new IONIQ 5s to qualify for the full $7,500 IRA tax credit.
Hyundai Motor is traded on the OTC market under the ticker HYMTF. At the time of writing, shares were up 1.41% from the opening bell, trading at $63.85.
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