Lexus has officially taken the wraps off its first three-row all-electric SUV, the 2027 Lexus TZ. The announcement came during this week's episode of Transport Evolved News (TEN 581), a show that also covered Subaru lease promotions and a plug-in vehicle that, according to the episode, can actually float.

While details remain scarce at this point, the TZ represents a significant milestone for Lexus and for the broader electric vehicle market. The luxury brand, long known for its hybrid drivetrains, has been slowly building out its electric lineup with the RZ crossover and the upcoming LF-ZC sedan concept. The TZ fills a gap that many buyers have been waiting for: a large, family-sized EV with three rows of seats.

What we know about the Lexus TZ

From the episode, Transport Evolved News confirmed that the Lexus TZ is a three-row all-electric SUV and that it is slated for the 2027 model year. That places the launch roughly three years out, giving Lexus time to finalize production and pricing. The name "TZ" follows Lexus's current naming convention for its electric vehicles, which use the "Z" suffix (RZ, LF-Z, etc.). It does not denote a specific body style or size, but in this case it signals a utility vehicle with three-row capacity.

A three-row electric SUV is a vehicle that can carry up to seven or eight passengers, depending on configuration. Only a handful of such EVs exist today — the Tesla Model X, Rivian R1S, Mercedes-Benz EQS SUV, and the upcoming Kia EV9 among them. Lexus's entry into this segment suggests it is aiming for the luxury family buyer who wants an all-electric alternative to the Lexus TX or Toyota Grand Highlander.

Why the 2027 timeline matters

A 2027 model year release means the TZ will likely go on sale in late 2026 or early 2027. That is not far off in automotive terms, but in the fast-moving EV space it feels like a deliberate wait. Lexus may be waiting for next-generation battery technology — such as solid-state cells — to deliver the range and charge speeds necessary to compete with the best in class. Toyota, Lexus's parent company, has been vocal about its solid-state battery plans, targeting production in the mid-2020s.

The three-row EV market is also expected to grow significantly by then. Automakers from Volvo to Hyundai have announced plans for large electric SUVs. By launching the TZ in 2027, Lexus may be positioning itself to leapfrog competitors who rushed to market earlier with shorter-range or more expensive models.

Subaru lease deals and the floating plug-in

TEN 581 also covered two other notable stories. Subaru is currently offering lease deals on some of its models, though the specific terms and vehicles were not detailed in the briefing. Subaru has been expanding its electrified lineup with the Solterra EV and various hybrids, so lease promotions could help move inventory and attract buyers wary of high EV prices.

The third story, described as "the plug-in that actually floats," was teased but not elaborated upon. It likely refers to a plug-in hybrid or electric vehicle designed for amphibious use, or perhaps a novelty vehicle that can operate on water. Given the playful phrasing, it may be a concept or a limited-production vehicle shown at a recent auto show. Without further confirmation, we can only note that the episode included it as a headline.

What the TZ says about Lexus's EV strategy

Lexus has been cautious with its EV transition. The RZ, its first dedicated electric model, launched in 2023 to mixed reviews. Its range was competitive but not class-leading, and its price placed it squarely in the luxury crossover segment. The TZ, as a three-row flagship, signals that Lexus is ready to go bigger — both in size and ambition.

A three-row EV requires a larger battery pack, more powerful motors, and careful engineering to maintain interior space while keeping weight in check. Lexus has decades of experience building comfortable, quiet, and reliable luxury vehicles. Translating those strengths into an all-electric platform for families is a natural next step.

The TZ will also need to offer competitive driving range. Today's three-row EVs typically offer between 250 and 330 miles of EPA-rated range. By 2027, buyers will expect at least 350 miles as standard. Lexus will also need to support fast charging at 350 kW or more to keep road trips practical. The vehicle's price will also matter. Lexus has historically positioned itself above mainstream Toyota but below German luxury brands like BMW and Mercedes-Benz. A TZ starting around $70,000 would fit that sweet spot.

Competition heating up

The three-row electric SUV segment is far from crowded today, but it will be by 2027. The Tesla Model X has been on the market since 2015, but its high price and aging design make it vulnerable. The Rivian R1S is popular but expensive and limited by production capacity. The Mercedes-Benz EQS SUV offers luxury but carries a six-figure price tag. The Kia EV9, launching this year, brings a more affordable option with three rows.

Lexus will face pressure to differentiate the TZ from the Toyota bZ large SUV that is also expected around the same time. Toyota and Lexus often share platforms and powertrains, so the TZ may share its architecture with a Toyota sibling but gain unique styling, materials, and ride tuning.

What comes next

Transport Evolved News did not provide a release date beyond the 2027 model year, nor did it share range, price, or powertrain specs. Lexus itself will likely dribble out details over the next two years, with a full reveal closer to production. In the meantime, shoppers looking for a luxury three-row EV have limited options. Those who can wait until 2027 may find the Lexus TZ a compelling choice — especially if Lexus delivers on range, refinement, and reliability.

The Subaru lease deals and the floating plug-in are reminders that the EV market is moving in many directions at once. Automakers are experimenting with different form factors, drivetrains, and business models. The TZ, however, is squarely aimed at the mainstream luxury family — the kind of buyer who needs room for kids, cargo, and road trips, and wants to do it without gasoline.

SysCall News will continue to follow the Lexus TZ as more information becomes available. For now, the headline is clear: a three-row Lexus EV is coming, and it's called the TZ.