Toyota Shocks Auto Industry with First All-Electric Highlander SUV
Finn's Take· TL;DR- Toyota launches first all-electric Highlander for 2027 with up to 320-mile range, directly challenging competitors retreating from EV ambitions.
- Two battery options deliver 221-338 horsepower with three-row seating for seven passengers and 46 cubic feet of cargo space.
- Made in America using Kentucky assembly and North Carolina batteries, targeting mid-$50,000 starting price when sales begin late 2026.
A Major Shift in Toyota's EV Strategy
Toyota has unveiled its most significant electric vehicle announcement yet: the Toyota Highlander is completely electric for the first time in the model's history. This marks Toyota's first three-row EV, and the fourth EV in Toyota's US lineup , representing a dramatic departure from the company's traditionally cautious approach to battery-powered vehicles.
What makes this announcement particularly striking is the timing. Many automakers have significantly toned down their electric-vehicle ambitions in the United States. But Toyota is stepping up in a big way , doubling down on electric power just as competitors retreat to hybrid alternatives. The car company that I call "the smartest in the world" sat back and waited until everybody else gave up on EVs, and now they'll swoop in and show the world how to sell a 3-row all-electric SUV .
Performance and Range That Competes
The 2027 Highlander offers two battery configurations designed to meet different family needs. The base XLE packs a 77.0-kilowatt-hour battery and a single electric motor good for 221 horsepower, 198 pound-feet of torque, and 287 miles of range . Families wanting more capability can opt for the XLE AWD with the standard 77.0-kWh pack, and power improves to 338 hp and 328 lb-ft .
The top-tier configuration delivers impressive range numbers. Upgrade to the larger 95.8-kWh pack on the most premium XLE AWD or the Limited model (which comes standard with AWD and the larger pack), and the total range figure improves to 320 miles . These specifications put the electric Highlander squarely in competition with established three-row EVs like the Kia EV9 and Hyundai Ioniq 9.
Built in America for American Families
Toyota is making a significant domestic manufacturing commitment with this vehicle. The 2027 Highlander is assembled in Georgetown, Kentucky, with batteries sourced from Toyota's newly opened Battery Manufacturing plant in North Carolina . It is also Toyota's first three‑row battery‑electric vehicle (BEV) for the U.S. market and the first BEV assembled in America .
The interior maintains the Highlander's family-focused approach while adding modern touches. The 2027 Highlander has a spacious interior with three-row seating for up to seven when equipped with an available bench seat . The new Highlander boasts 16 cubic feet of storage behind the third row, which grows to 46 cubes with the rearmost seats stowed .
A Test Case for Electric Family Transportation
The electric Highlander represents more than just another EV launch—it's a litmus test for whether mainstream families will embrace electric three-row SUVs. The smartest way to think about the 2027 Highlander is not as a single vehicle but as a litmus test: can Toyota translate its reputation for low-drama family transportation into the EV era without turning ownership into a hobby?
Production is expected to kick off late in 2026, with sales later in the same year . While Toyota hasn't announced pricing, we expect it to start in the mid-$50,000 range . If Toyota can deliver the same reliability and ease of ownership that made the gas-powered Highlander a suburban staple, this electric version could finally make three-row EVs mainstream for American families.