All-Electric 2023 Lexus RZ Steers Luxury in a New Direction

• The 2023 Lexus RZ 450e is on sale now in the US with a conventional steering wheel, but a butterfly-style steer-by-wire yoke is coming.

• A 150-kW front motor and an 80-kW motor propelling the rear uses power from the water-cooled 71.4-kWh lithium-ion battery pack, with a total output of 308 hp.

• The RZ could qualify for federal tax credits if leased. The customer doesn’t get the credit, but the finance company does and should technically pass it on to the customer, according to Lexus.

With the growing market for all-electric crossovers, it’s not easy for an automaker to find a unique selling attribute to stand out from the premium competition. There’s the Mercedes-Benz EQB, BMW iX, Cadillac Lyriq, Audi e-tron, Jaguar I-Pace, and Volvo XC40 Recharge—all chasing the Tesla Model Y—with more EVs on the way.

The seat-of-pants experience across these models will be roughly the same: a quiet, smooth ride with lots of torque and an upscale, roomy interior with a cargo hold. A key differentiator for shoppers will be estimated range, along with the convenience and availability of local charging options.

Lexus has another—somewhat radical—idea that could spark demand among young, aspirational drivers who grew up racing cars virtually through video games. Lexus’ first all-electric crossover, the 2023 five-passenger RZ 450e, is also the brand’s first vehicle to offer steer-by-wire—there’s no steering column or physical linkage communicating steering inputs to the rack-and-pinion assembly that turns the wheels.

The Japanese luxury brand goes one giant step further, replacing the steering wheel with a butterfly-shaped yoke (although Lexus is trying to find a better name for it) that would look right at home in the cockpit of your everyday Millennium Falcon.

Based on our recent test drive in Europe, this new technology completely upends the handling dynamics in a segment known for conservative driving. It might be the car Max Verstappen would buy.

But Lexus smartly is launching the RZ 450e first with conventional steering and a round wheel, perhaps anticipating a small enthusiast crowd interested in the steer-by-wire yoke, which will be offered in the US once the engineers have the technology fully baked.

For context, the steering wheel with the conventional electric power steering system completes nearly three full rotations in the RZ—old classic cruisers with loose steering could manage about four rotations. With steer-by-wire, the RZ’s butterfly yoke can’t even make one full rotation. To go lock-to-lock requires the yoke to travel a mere 150 degrees in each direction, which seems to work fine on the highway with minimal steering inputs.

But try making a U-turn or a 90-degree right at an intersection or a three-point turn requiring shifting into reverse—the most disconcerting maneuver of all—and you might feel like it’s your first time ever driving a car.

But let’s not obsess about steer-by-wire. The RZ 450e is an exceedingly competent, comfortable, stylish EV, with or without the funky steering. Its observed energy efficiency was a bit disappointing, however.

The RZ fits neatly in Lexus’ crossover portfolio, larger than the UX and NX and smaller than the RX. While the others run with gasoline engines or in hybrid configurations, the RZ is the only BEV, and yet the general design language for all four is basically the same, with steeply raked windshields and liftgates contributing to an upscale, sporty vibe. By 2035, Lexus plans to produce nothing but battery-electric vehicles.

The controversial Lexus grille provides the most differentiation, with the UX and NX sticking with the angry and angular Predator-style “spindle grille” while the newer RX and RZ are toning down this visual element.

Because the RZ doesn’t need the same open-air front-end cooling for a radiator, the design team has come up with the “spindle body,” which means the trapezoidal shape is the same, but created instead with body-color fascia. I consider it an improvement. The RZ also has an optional illuminated Lexus logo between the headlamps.

With steer-by-wire getting most of the attention, it’s easy to overlook the powertrain, largely because it performed during our test drives exactly as a modern BEV should: With no CVT or conventional step-gear transmission, acceleration is swift, smooth, and nearly silent, thanks to a 150-kW front axle motor and an 80-kW motor propelling the rear using power from the water-cooled 71.4-kWh lithium-ion battery pack stowed under the floor and supplied by Prime Planet Energy & Solutions.