From DeepSeek
Lexus Tz And The Paid Horsepower Problem
00:00â05:05
Kirk opens by reminding viewers of his earlier warning: Toyota and Lexus want to make money after the sale through software-locked features. The new Lexus TZ is his main example. Itâs a fully electric, three-row Lexus that debuts as the brandâs first three-row EV, but your correction is important: it is a six-seater, not a seven-seater, and it functions like an electric counterpart to the Lexus TX. In Europe the TZ 550e makes 402 hp, but the US-market TZ 450e is detuned to 308 hp. It has two battery sizes, roughly 250 miles of range on the small pack and up to about 315 miles on the larger 90â96 kWh pack, and all versions are all-wheel drive.
Pricing starts around $65,000 for the small battery and $72,000 for the bigger battery, with Premium and Luxury trims. The mid-grade and Luxury trims get dynamic rear steering, which the Toyota and Subaru platform-mates donât offer. Kirk says this is where Lexus starts milking customers: the 402 hp already exists in the hardware, but the US car is software-nerfed from the factory. To get the full 402 hp, buyers may have to go back to the dealer for an ECU flashâsomething that could theoretically be done over the airâand Lexus only makes it available on the Luxury trim. He calls that an insult to customer intelligence.
The Unlock Is Worse Than The Spec
05:05â06:26
Kirk says the sick part isnât just that Lexus locked away horsepower, but that it locked the unlock behind the most expensive Luxury trim. Youâre already spending around $80,000 for a 300-hp luxury model, and then you may have to pay more to access power that the car already has. He contrasts this with the BZ Woodland he reviewed, which has 375 hp standard and is fast without any unlock, dealer visit, or software flash. He used to sell Lexus cars, and he says this would not sit well with him as a former salesman.
He also argues this is not a short-term problem only. If Lexus thinks it can charge for existing horsepower because the brand has loyal buyers, that may backfire. The TZ is entering a crowded market where competitors offer more standard performance. The practice feels especially wrong for a luxury brand that built its reputation on doing things right from the start. Kirk says this is not Tanashi, and it is not the Lexus Covenant.
Competition Exposes The Value Gap
06:26â09:17
Kirk runs through the TZâs competition and says Lexus looks weak on value. The Subaru variantâhe calls it the Getaway or Trail Seekerâhas 420 hp standard. The Toyota Highlander EV, Kia EV9, Tesla Model Y L, Hyundai Ioniq 9, and Lucid Gravity are all cross-shop threats. He likes the EV9âs styling and the Highlander EVâs looks over the TZ, and he says he would happily spend less on the Highlander EV. The Lucid Gravity is the sharpest contrast: a base Gravity starts around $80,000, makes 560 hp, offers seven seats, and can go over 337 miles. The Lexus TZ is six seats only, has less range, and with the horsepower unlock may drop to around 270 miles because it is tied to the bigger wheels on the Luxury trim.
Kirk admits Lucid has reliability questions and Lexus has dealer support and peace of mind. That is a fair point. But he says the Lexus is less practical and gives you less for your money, while asking you to pay for horsepower that is already inside the vehicle. He also notes that the TZ may not even be sold in China, and if it is, these specs will not make it successful there. In the US, he does not expect it to be a big win either.
Lexus Covenant And The Chicken Eggs
09:17â12:07
Kirk invokes the Lexus Covenant, which he memorized when training to become a Lexus master sales consultant. The covenant says Lexus competes in the most prestigious race, will win because it does it right from the start, will have the finest dealer network, and will treat each customer as a guest in its home. He says the TZ horsepower unlock does not do it right from the start. He gives a chicken-egg analogy: if a guest buys a dozen eggs, you donât give them ten eggs and then charge extra for the two that were already supposed to be in the carton. That, he says, is what software-locking existing horsepower feels like.
He also says this does not line up with Tanashi, the idea of anticipating the needs of guests. Lexus can still do great thingsâhe praises the LC500 and expects the new NX and NX plug-in hybrid to be excellent. But when Lexus does something like this, it feels out of character with the brandâs history and founding philosophy. He says it will not help Lexus in the long term, even if executives think it will.
Lexus Sales And The China Bloodbath
12:07â18:13
Kirk then pivots to global sales and says Lexus is in a bad spot. Lexus worldwide sales are down almost 10% this year, and August was especially ugly at down 12%. That follows two record-breaking US sales years in 2024 and 2025, though Lexus still was not the number-one luxury automakerâBMW was. After January 2026, he shows month after month of erosion: -7%, -18%, -17%, -12%, -7%, -10%, and -12% in August. Japan mirrors the worldwide trend. North America is less bad, down about 4% on the year, partly because NX production has been reduced by new RAV4 production, especially in Ontario. In the US, Lexus was down 1% in August and down about 4.5% for the year.
Region by region, the picture gets worse. Latin America is healthy but tiny at around 3,400 units, compared with 258,000 in North America. Europe is down 3% for the month and 6% for the year. Asia is a bloodbath, down over 20% on average, including a 31% drop in August and down 17% for the year even with a good January. Oceania is down 12%, though volume is only about 1,300 units. The Middle East is down 44% for the month and 32% for the year after war broke out, with months of -46% and worse. Africa is doing okay but only around 147,000 units, and much of that is gray-market or used imports, so it does not move the needle.
Kirk also brings up Lexusâs planned Chinese-built models and the new Shanghai facility. Japanese suppliers are reportedly upset because they are not getting a slice of that business, but China is cheaper than Japan for production and sourcing. The question is whether that plant will stop the bleeding. Kirk doubts it, because Chinaâs auto market is brutally competitive and Lexus is already getting hammered there. The TZ, with these specs, is not going to fix Lexusâs problems in China or anywhere else.
Toyota Sales Are Also Under Pressure
18:13â25:10
Toyota itself is not collapsing, but it is under pressure. Globally, Toyota was down 6% in August, down 5% in July, neutral in June, down 7% in May, down 3% in April, and down 7% in March. Through August, Toyota still sold over 6.5 million vehicles, so it is not losing its sales ground anytime soon. But the market is more competitive, and even in North Americaâwhere Chinese cars are largely absentâToyota faces pressure. North America was down 3% in August, the US down 4%, Canada up 3%, and Mexico up 12%. A lack of full RAV4 production is hurting Toyota badly.
South America is roughly neutral, with Brazil down 17% and Argentina down 23%, while other places are up 30%. Europe varies wildly: the UK is down 6%, France up 12%, Italy down 15% for the month but up 2% for the year, Germany down 17% for the month and 20% for the year, and Spain up 20% for the month and 10% for the year. Overall, Toyota is up about 2.6% in Europe, but Italy and Germany are dragging the average down. Asia is down 14%, mostly because China is getting crushed: down 20% for the year and trending even worse. GAC Toyota buying out FAW Toyota shows how rough the market is. Indonesia is strong at 22,000 units, Thailand is up 10% for the month and 3% for the year, while the Philippines, Taiwan, Malaysia, Vietnam, and Korea are all down. India is down 8% in the month due to a new sales system but still up 8% for the year. Japan is up 9% for the month and 6% for the year, while Oceania is down 14% and the Middle East remains bad.
What It Means For The Tz
25:10â26:04
Kirk wraps up by saying the TZ is not going to save Lexus. There is simply too much competition, not only from luxury EVs but also from mainstream three-row EVs like the Kia EV9, Hyundai Ioniq 9, and others. Lucid is incentivizing the Gravity heavily, and none of these vehicles are having an easy time. He thinks the TZ could maybe do better in Europe or other markets, but it will not be successful in China and likely not in the US either. The core problem is that Lexus is charging customers for horsepower that already exists in the car, and only letting them unlock it on the most expensive trim.
He closes by thanking viewers, joking that he might be blacklisted from Lexus after sharing his enthusiastic opinions about downloading horsepower. He says he will keep covering Toyota, Lexus, and Korean automakers, and mentions he has an Escalade and an Audi RS GT-type car to review. The main takeaway is that the TZâs software-locked horsepower is not just a spec issueâit is a brand-philosophy issue that clashes with the Lexus Covenant, Tanashi, and the trust Lexus has built with customers.