Toyota's Simulated Gearbox Is Coming to America

The 2026 Lexus RZ gets a new drivetrain and a "virtual manual gear shift system" that simulates a paddle-shifted transmission.

2026 Lexus RZ

Photo by: Lexus

Brian Silvestro

By: Brian Silvestro

May 20, 2025 at 10:18am ET

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The only fully electric Lexus just received a big makeover. Changes to the outside are minimal, but underneath, the 2026 Lexus RZ crossover has been totally overhauled with new battery and motor tech, along with a standard NACS charging port and a simulated paddle-shifted transmission.

Lexus says changes to the battery, charging system, and motors have led to more power, more range, and reduced charging times. There are now three trims available: The base RZ 350e, the mid-tier RZ 450e, and a new range-topping RZ 550e F Sport. The base car sends power to the front wheels via a single electric motor, while the two more expensive trims get all-wheel drive thanks to an additional motor at the rear.

2026 Lexus RZ

Photos by: Lexus

2026 Lexus RZ

The 550e F Sport is the big news here. Lexus claims a total output of 402 horsepower, with a 0-60 mph time of just 4.1 seconds. Range is the worst of the bunch, at an estimated 225 miles. That's still better than the outgoing 450e, though a new 76.96-kWh battery pack definitely helps.

The sporty RZ comes standard with a new system Lexus calls M Mode. It acts as a simulated paddle-shifted automatic gearbox "to deliver a sportier, more responsive driving feel." It's unclear if the system acts similarly to those found in certain Hyundais or Kias, where the motors are tuned to cut off once each gear reaches "redline," or if it acts differently. Lexus says the system "allows drivers to control power output with paddle shifters, as if using a manual transmission."

Either way, we're glad more automakers are beginning to see the benefits of a simulated transmission for electric vehicles. So far, only Hyundai and Kia have put such systems into production. But they've received near-universal praise—so much so that other companies like Ford and BMW are considering on their own versions. Toyota was one of the pioneers of the tech, with plans to develop a clutch-operated manual EV as far back as 2022.

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The two lesser 2026 RZ trims don't get M Mode, but they do get a new 74.69-kWh battery pack. The front-wheel drive 350e is the range king, delivering an estimated 300 miles between charges when equipped with smaller, more efficient 18-inch wheels. It makes 221 hp, enough for a zero to 60 sprint of 7.1 seconds. Opt for the 450e AWD, and maximum range drops to 260 miles. You get 308 hp for your troubles, enough to sprint to 60 mph in 4.9 seconds. No matter the trim, Lexus promises the RZ can charge from 10 to 80 percent in just 30 minutes via DC fast charging "under ideal conditions."

2026 Lexus RZ

Photo by: Lexus

Weirdly, none of the three trims are getting the steering yoke or steer-by-wire system promised to overseas variants. Whether that's due to disinterest amongst American buyers or a regulatory roadblock is unclear. Either way, pricing should be available a bit before deliveries begin later this year.