Volvo’s next electric SUV will start in the upper $40,000 range
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- Volvo is preparing to launch the EX50 electric SUV in the US starting in the upper $40,000 range, undercutting the 2026 EX40's $56,545 starting price and targeting the Tesla Model Y
- EX50 will arrive at US dealerships in 2027, replacing the EX40 as Volvo's most affordable EV, and is described as taller and longer than its predecessor per sources cited by Automotive News
- Volvo will build the EX50 (codenamed V326) at its Kosice, Slovakia plant on the new SPA3 800-volt platform, which promises faster charging, longer driving range, and more interior space
- Volvo filed the EX50 name with the European Union Intellectual Property Office and said it will unveil two new electric models by the end of summer
- Volvo's US fully electric vehicle sales fell 44% in Q2 to just over 1,500 models, a drop the company attributes to Trump administration import tariffs and the loss of the $7,500 federal EV tax credit
- Matthew Haiken, owner of Prestige Volvo in East Hanover, NJ, called the EX50 "both exciting and a little disappointing," noting it's much like the Polestar 7 — also built in Slovakia — after he had to stop selling Polestar vehicles in the US
Why it matters: With Volvo's US EV sales down 44% in Q2 and the $7,500 federal tax credit gone, the EX50 is a bet that a sub-$50,000 price point and the new SPA3 platform can pry buyers away from the dominant Tesla Model Y. US Volvo dealers shut out of the Polestar brand now get a consolation-prize model rolling off the same Slovak assembly line as the Polestar 7.
