Subaru was slow out of the blocks when it came to adding EVs to its lineup, but now it’s wondering whether to even bother trying to catch up to rivals. The automaker revealed this week it was “re-evaluating” its electrification strategy amid a turbulent and uncertain time for the auto industry.

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Look at Subaru’s US website and you’ll find just one EV: the recently facelifted Solterra. A second, the Outback-sized Trailseeker that made its debut at last month’s New York Auto Show, is scheduled to be added to the range for 2026. But we’re unlikely to see many more EVs join it any time soon.

Tariffs and Tax Credits: The Great Unknowns

Aside from a general concern about a slowdown in the rate of EV takeup, Subaru, like every other automaker, is hamstrung by a lack of clarity from the US regarding its long term position on both import tariffs and EV tax credits. Nobody knows what the tariff situation will look like six or 12 months from now or whether tax credits will be scrapped or not.

Subaru estimates Trump’s tariffs could cost it $2.5 billion this year because, although the company does have a plant in Indiana, it only builds around half of the 700,000+ cars the brand sells in the US each year, Auto News reports. The remainder have to be imported, an d while Subaru could theoretically push the US plant’s current 345,000-unit annual capacity to 500,000, its supplier base can’t handle more than 370,000 units without a major upgrade.

Overseas Production and Shifting Plans

That means the Trailseeker will probably have to be built overseas, Auto News suggesting production will take place north of Tokyo. Subaru also had planned to create a new EV-only plant, but is rethinking that strategy, too. It now says it might have to add combustion vehicles into the mix at the new site.

Subaru execs made the admissions while announcing the company’s fiscal year financial results that revealed operating profit had dipped 13 percent to $2.7 billion. Global sales dropped 4.1 percent to 936,000 vehicles and North American deliveries slid 4.1 percent to 732,000 vehicles, though sales in Japan did climb 5.4 percent to 104,000.

The electric crossover landscape is moving fast, and Subaru is making an effort to stay in the race. The 2026 Subaru Solterra has been unveiled at the New York Auto Show, bringing styling, tech, and mechanical upgrades over its predecessor. The comprehensive facelift helps the EV distinguish itself from the recently updated Toyota bZ4X twin, while also making it more competitive in terms of driving range and available features.

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Starting with the exterior, the redesigned front end adopts a cleaner, more cohesive look with slimmer LED headlights and a toned-down grille. It bears a stronger resemblance to the larger Subaru Trailseeker. The once-controversial plastic cladding is now painted in body color, which makes a noticeable difference in the overall design. Subaru also notes that two-tone color configurations will be available, though they haven’t been shown yet in any official images.

The profile and the tail are largely carried over from the outgoing model that has been around since 2022. The only exceptions are the new wheel designs measuring 18 inches or 20 inches in diameter, and the fresh Subaru lettering on the tailgate.

Inside, the highlight is the new 14-inch infotainment touchscreen with wireless Apple CarPlay and Android Auto compatibility. The EV also comes standard with wireless chargers, USB-C ports, and a wide range of ADAS from the Subaru EyeSight suite.

Range, Charging, and Battery Improvements

While the design will be the first thing that prospective buyers will notice, the mechanical upgrades are even more crucial for the competitiveness of the EV. The 2026 Subaru Solterra has a range of over 285 miles (459 km) between charges, marking a 25% improvement compared to its predecessor. This was made possible thanks to a new 74.7 kWh lithium-ion battery pack mounted under the floor.

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According to Subaru, the battery can charge from 10-80% in under 35 minutes, when connected to an 150 kW charger. Furthermore, the Solterra is now equipped with a battery preconditioning system for more efficient charging in cold weather, and has a North American Charging Standard (NACS) port, providing access to the Tesla Supercharger network.

More Power and Improved Dynamics

The standard AWD powertrain of the 2026 Subaru Solterra has also been significantly upgraded, with a stronger rear electric motor and improved power distribution. The combined output is 338 hp (252 kW / 343 PS), which is a healthy increase over the 215 hp (160 kW / 218 PS) of its predecessor. The extra power allows the crossover to accelerate from 0-60 mph (0-97 km/h) in under 5 seconds.

The driver has access to the X-Mode system (Snow/Dirt and Deep Snow/Mud driving modes), Grip Control, and Downhill Assist Control, as well as 8.3 inches (211 mm) of ground clearance. Besides the new AWD settings, Subaru engineers have also tweaked the suspension and the electric power steering for greater handling.

The 2026 Subaru Solterra will reach US dealerships later this year. Pricing and detailed specifications will be announced closer to the market launch.

The Toyota bZ4x has just received a mid-cycle update, and it looks like its Subaru twin, the Solterra, may soon follow suit. But these two crossovers won’t be the only EVs born from the Toyota-Subaru partnership. In 2026, the automakers are reportedly planning to expand their lineup with a pair of new compact SUVs.

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In an effort to keep research and development costs manageable, these new compact SUVs are expected to share key components with the e-TNGA platform already used by the bZ4x and Solterra. This includes components like battery packs and electric motors. This collaboration allows both Toyota and Subaru to cut costs and allocate more resources to other projects.

New EV Models Teased by Toyota

Earlier this week, Toyota teased three new EVs that will launch by 2026. These will join the ranks of the bZ4x, C-HR+, and Urban Cruiser in Toyota’s lineup. Two of the teased vehicles seem to be production versions of the EPU pickup and the Land Cruiser SE, both of which were shown as concepts in 2023. This has led to speculation that the third teaser might be the compact SUV that Toyota and Subaru are working on together.

If this is indeed the case, the new EVs are expected to adopt a more traditional SUV shape compared to the bZ4x and Solterra crossovers. The design hints at a profile similar to the upcoming Toyota RAV4, with a sharp nose, roof rails, and a more upright rear end. While the Toyota and Subaru versions will likely share much of their exterior and interior design, each will probably feature a distinctive front end to help buyers tell them apart.

Expanding the EV Market in Key Regions

According to Best Car, these new compact SUVs will be available in Japan, Europe, and the U.S., broadening both Toyota and Subaru’s zero-emission offerings in the compact SUV segment. Unlike the bZ4x and Solterra, which are currently produced at Toyota’s Motomachi Plant, the new jointly-developed models will reportedly be built at Subaru’s Yajima plant in Japan, with production set to start in January 2026.

While Toyota already offers three EVs (bZ4x, CH-R+, and Urban Cruiser) in Europe, the Solterra remains the sole zero-emission offering in Subaru’s global lineup. That will soon change, with this new SUV being one of four electric models Subaru plans to launch in collaboration with Toyota.

Subaru’s Own EV Ambitions

In addition to the jointly-developed vehicles, Subaru has its sights set on launching its first in-house-developed electric vehicle by 2028. These launches are part of a broader effort to have battery-electric vehicles account for half of Subaru’s global sales by 2030, a goal that will likely require a mix of joint and solo ventures, with both Toyota and Subaru continuing to expand their electric offerings over the next several years.