Wednesday, 11 Mar 2026

Lexus RZ Review: Luxury EV Undercut by Critical Flaws

2023 Lexus RZ: A Luxury EV With Deal-Breaking Shortcomings

After extensively testing Lexus's first dedicated electric vehicle, I must address a critical question upfront: Can you justify a luxury EV with under 200 miles of real-world range in 2023? While the RZ delivers signature Lexus comfort and refinement, fundamental flaws in its electric powertrain make it impossible to recommend. As an automotive analyst who's tested every major EV competitor, I found the RZ's compromised range and thermal management particularly alarming for a $68,000 vehicle. Let's break down why this promising entry stumbles where it matters most.

Exterior Design & Practicality: Style Over Substance

Lexus successfully disguises the RZ's shared platform with Toyota's bZ4X through sharp styling cues like the signature spindle grille and full-width LED lighting. Our tester featured the optional $1,200 two-tone paint (available only on blue or gray), which proved divisive during testing – the black hood accent creates an overly aggressive profile. Stick with single-tone finishes for a cleaner look.

Notable practical compromises emerged:

  • No front trunk (frunk), despite ample under-hood space
  • Steeply raked rear glass severely limits rear visibility
  • 20-inch wheels reduce range by 24 miles versus base 18-inch versions (196 vs 220 miles EPA)
  • Length (189 inches) slightly exceeds Tesla Model Y, yet offers less cargo space (24 cubic feet vs 34.3)

Design choices prioritize aesthetics over EV functionality. The floating roof effect uses faux window panels rather than actual glass, and the illuminated Lexus emblem ($200 option) feels like style over substance.

Interior Execution: Comfort Meets Frustration

Step inside, and the RZ redeems itself partially with a serene, well-appointed cabin. Our Luxury trim featured ultrasuede seats with exceptional comfort and bolstering, plus premium touches like:

  • Electrochromic glass roof ($500 option) transitioning from opaque to transparent
  • Heated/cooled front seats and heated rear outboard seats
  • 14-inch touchscreen with crisp wireless Apple CarPlay/Android Auto
  • Physical climate controls and volume knob (a welcome relief from touch-only interfaces)

However, critical oversights undermine the experience:

  • No glove compartment – a baffling omission forcing reliance on the center console
  • Cumbersome shift-by-wire selector requiring push-and-rotate actions
  • CarPlay display obscures climate shortcut buttons rather than sharing the screen
  • Steering wheel paddles adjust regenerative braking but lack true one-pedal capability

Rear legroom trails key rivals, though my 6'1" frame fit adequately behind the driver's seat. The split-folding rear seats (60/40) lie flat for cargo flexibility, partially offsetting the small trunk.

Driving Experience & Fatal Range Flaws

Behind the wheel, the RZ's dual-motor AWD system (313 hp, 5-second 0-60 mph) delivers confident acceleration. Ride quality remains plush and quiet even on 20-inch wheels, with natural-feeling brakes uncommon in EVs. Visibility suffers from thick rear pillars, making the camera system essential.

The powertrain reveals catastrophic shortcomings:

  • 196-mile range (20-inch wheels) falls 26% below Tesla Model Y Long Range (330 miles)
  • Climate control slashes range dramatically: Turning it on dropped our display from 123 to 97 miles – a 21% penalty without extreme settings
  • No true one-pedal driving despite regenerative braking paddles; maximum regen is insufficient for stop-and-go traffic
  • Drive modes (Range, Eco, Sport) require distracting touchscreen access

Thermal management appears decades behind competitors. Losing 26 miles of range for basic climate use is unacceptable, especially in cold/hot climates. Charging speeds also lag rivals, taking approximately 30 minutes for 10-80% on DC fast chargers.

Competitive Landscape: Outclassed on Core Metrics

The RZ's $59,650 starting price ($68,000 as tested) positions it against superior EVs:

ModelStarting PriceRange (EPA)Key Advantages vs. RZ
Tesla Model Y LR$50,490330 miles+134 miles range, faster charging, lower price
Genesis GV60$59,985248 milesFaster charging, V2L capability, premium interior
Volvo XC40 Recharge$53,550254 milesBetter cargo space, lower price, Google infotainment
Audi Q4 e-tron$55,300265 milesSuperior build quality, virtual cockpit, better efficiency

Industry data confirms the RZ's range ranks among the lowest for modern premium EVs. The 2023 Bolt EUV, priced under $30,000, achieves 247 miles – highlighting Lexus's engineering shortfall.

The Verdict: A Missed Opportunity

After analyzing the RZ's strengths against its critical flaws, my recommendation is unequivocal: Avoid this first-generation Lexus EV. While the serene cabin and comfortable ride align with brand expectations, the powertrain's limitations are too severe at this price.

Critical failures include:

  1. Sub-200-mile real-world range with climate use
  2. Primitive thermal management causing massive range loss
  3. Lack of true one-pedal driving
  4. Higher pricing than better-equipped rivals

Actionable alternatives:

  • Prioritize range? Tesla Model Y dominates with 330 miles and superior charging
  • Seek luxury? Genesis GV60 offers comparable refinement with better tech
  • Value-focused? Volvo XC40 Recharge undercuts the RZ by $14,450

Lexus will likely improve future iterations, but the 2023 RZ fails as a competitive luxury EV. Until range and thermal management see significant upgrades, your money is better spent elsewhere.

Which flaw would most impact your driving habits – the range penalty or lack of one-pedal driving? Share your deal-breakers below.