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2025 Lexus LX 700h First Drive: Hybrid Power Meets Off-Road Luxury

2025 Lexus LX 700h/techfullnews

The 2025 Lexus LX 700h debuts in Northern California, marking a significant advancement in the luxury SUV segment. For the first time, the LX features a hybrid powertrain, combining performance, efficiency, and legendary off-road capability. The new LX Overtrail package further enhances its rugged appeal, incorporating triple-locked differentials—a feature not seen in the LX since the 1990s.

A Blend of Luxury and Off-Road Performance

Unlike the GX, the LX does not offer an Overtrail+ trim, as it remains focused on luxury. However, the Overtrail package does include 18-inch wheels with 33-inch Toyo Open Country A/T III tires, matte black exterior accents, and an updated electronic suspension system for improved off-road handling.

With the Toyota Land Cruiser and GX now based on the J250 Prado platform, the LX remains the only J300-based luxury SUV available in the U.S. The hybrid powertrain increases the LX’s appeal by offering enhanced horsepower and torque, while also providing a slight boost in fuel efficiency—an essential factor for prospective buyers in this segment.

Off-Road Enhancements: The Overtrail Experience

One standout feature of the LX 700h Overtrail is its suspension system. Unlike competitors using air suspension, Lexus implements a hydraulic-based adjustable suspension, prioritizing durability and performance on rough terrain.

Despite the additional weight from the hybrid system, the 3.5-liter twin-turbocharged V6 hybrid engine generates an impressive 457 horsepower and 538 lb-ft of torque—surpassing the Toyota Tundra and Sequoia, which have the same powertrain but are limited to 437 horsepower. Lexus attributes this increase to unique tuning and a higher octane fuel requirement, optimizing torque distribution throughout the rev range.

Reliable Hybrid Technology for Off-Roading

Lexus has reinforced the hybrid system for reliability, especially in off-road conditions. The battery pack is enclosed in a waterproof casing, protecting it from water crossings. Additionally, an extra alternator ensures that the 12-volt system can operate the electric motor’s clutch even if the hybrid system malfunctions.

During our test drive in Napa Valley, the hybrid system’s added 500-pound weight was noticeable on highways. The all-terrain tires generated some road noise, though the low-revving hybrid engine helped reduce intrusion. Lexus has clearly engineered the hybrid LX to uphold the reliability standards of past LX models.

Adaptive Performance for Any Terrain

Taking the LX Overtrail off-road revealed its advanced suspension articulation and intuitive electronic adjustments. The ride height automatically increases, offering extra ground clearance when necessary. In 4-Low mode, the LX lifts by up to four inches, with manual adjustments available through the center console controls.

The J300 platform provides more suspension articulation than the J250 GX, compensating for the absence of an electronic Kinetic Dynamic Suspension System (e-KDSS). The triple-locking differentials enhance traction, though they were rarely needed during testing due to the LX’s excellent grip and power distribution.

However, shifting between 4Lo and the rear locker proved somewhat inconsistent, requiring multiple attempts before engaging properly—an unexpected issue for a high-tech luxury SUV.

Hybrid Power Improves Driving Dynamics

On gravel and dirt roads, the instant torque from the hybrid system provided responsive acceleration, making paddle shifters largely unnecessary. The hybrid’s additional weight seemed to lower the center of gravity, improving stability on uneven surfaces.

The Overtrail-exclusive Earth-tone paint and Nori Green Pearl complement the SUV’s rugged design, especially when covered in a light layer of dust. Meanwhile, the luxurious interior remains a highlight, with ventilated and massaging seats ensuring comfort throughout long drives.

Interior Technology: A Balance of Luxury and Functionality

Inside, the dual-screen infotainment system operates smoothly, though the lower climate and vehicle controls screen could benefit from an update. While Lexus retains physical buttons for essential driving functions, the center console layout appears somewhat cluttered compared to other premium SUVs.

For those prioritizing passenger comfort, the Ultra Luxury trim stands out with captain’s chairs and an elevated second-row experience. However, selecting this package removes the third row, which is still available in other trims despite minor cargo space reductions due to the hybrid battery placement.

Fuel Economy and Cost Considerations

The hybrid system offers only a slight improvement in fuel efficiency, with city MPG increasing from 17 to 19 MPG, while highway ratings remain at 22 MPG. A notable drawback is the reduced 17.97-gallon fuel tank, down from 21.14 gallons in the non-hybrid LX 600—limiting driving range for those who venture far from refueling stations.

Starting at $115,350, the LX 700h Overtrail carries a hefty price tag compared to the GX 550 Overtrail, which is nearly half the cost. Additionally, non-hybrid Overtrail models are available in other markets but not in the U.S., a notable omission given the hybrid’s limited fuel efficiency gains.

Who Should Buy the 2025 Lexus LX 700h?

For those prioritizing on-road refinement and hybrid efficiency, the F Sport Handling package may be the better option. Featuring a Torsen torque-biasing rear differential instead of locking differentials, it also benefits from the hybrid’s quicker 0-60 mph time, shaving off half a second compared to the non-hybrid LX 600.

Ultimately, while the LX 700h Overtrail excels in luxury and capability, its higher price, added complexity, and reduced fuel tank capacity make it less suitable for serious overlanding. If Lexus had introduced a plug-in hybrid system, it might have provided a stronger value proposition. However, for those seeking a high-end, hybrid-powered, seven-seater SUV with a balance of off-road capability and luxury, the 2025 Lexus LX 700h remains a compelling choice.

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In late 2023, The Wall Street Journal dropped a bombshell report claiming Tesla’s board had quietly initiated a search for Elon Musk’s successor as CEO. According to anonymous sources familiar with the matter:

  • The board allegedly began the process approximately one month before the report
  • Multiple executive search firms were contacted, with one firm reportedly selected to lead the process
  • Directors supposedly urged Musk to publicly commit more time to Tesla

The timing is critical. This alleged search coincided with:

  • Tesla’s first year-over-year delivery decline since 2020 (8.5% drop in Q1 2024)
  • A 13% decline in annual revenue – the first since 2017
  • Musk’s increasingly polarizing political engagements

Tesla’s Furious Rebuttal and the Credibility Battle

Within hours of publication, Tesla launched an aggressive counterattack:

1. Official Statement from Chair Robyn Denholm:

  • Called the report “absolutely false”
  • Claimed the board remains “highly confident” in Musk’s leadership
  • Alleged the WSJ was informed of this before publication

2. Musk’s Personal Response:

  • Accused WSJ of “EXTREMELY BAD BREACH OF ETHICS”
  • Claimed the paper ignored Tesla’s “unequivocal denial”

Journalistic Standoff:
The WSJ maintains it:

  • Reached out to Musk for comment (received no response)
  • Never received any pre-publication statement from Tesla

This credibility battle raises serious questions about:

  • The independence of Tesla’s board
  • The reliability of anonymous sourcing
  • Musk’s increasingly adversarial relationship with mainstream media

Deep Dive: Tesla’s Board Composition and Governance Concerns

Tesla’s eight-member board has long faced criticism for its close ties to Musk:

Notable Members:

  1. Kimbal Musk (Elon’s brother)
  2. James Murdoch (son of media mogul Rupert Murdoch)
  3. Ira Ehrenpreis (venture capitalist, Tesla director since 2007)
  4. Robyn Denholm (Chair since 2018)

Governance Red Flags:

  • Lack of Independence: 5 of 8 directors have served over 10 years
  • Compensation Controversy: Approved Musk’s $56B pay package (later voided by court)
  • Recent Insider Selling: Denholm sold $50M+ in shares over 90 days

Expert Perspective:
“Tesla’s board fails nearly every test of good corporate governance,” says Charles Elson, founding director of the Weinberg Center for Corporate Governance. “The level of entrenchment and lack of independent oversight is unprecedented for a company of this size.”

The Five Critical Challenges Facing Tesla’s Leadership

1. The “Key Person” Risk

Musk isn’t just CEO – he’s Tesla’s:

  • Chief product architect
  • Primary technology visionary
  • Main public spokesperson

Succession Planning Reality:

  • Apple began grooming Tim Cook years before Steve Jobs’ passing
  • Microsoft had Satya Nadella in leadership pipeline before Ballmer’s exit
  • Tesla has no publicly identified successor

2. Musk’s Divided Attention

The billionaire currently oversees:

  • SpaceX (CEO)
  • Neuralink (Founder)
  • The Boring Company (Founder)
  • xAI (Founder)
  • X/Twitter (Owner)

Time Allocation Impact:

  • 2023 analysis shows Musk spent <40% time at Tesla
  • Critical product launches (Cybertruck, Roadster) repeatedly delayed

3. Brand Erosion and Political Polarization

Musk’s recent activities:

  • Endorsed conservative political candidates
  • Acquired Twitter and reinstated banned accounts
  • Made controversial statements on gender, COVID, and other hot-button issues

Consumer Impact:

  • 2023 survey showed 18% drop in brand favorability among Democrats
  • 7% increase among Republicans (showing increasing politicization)

4. Operational Challenges

Production Issues:

  • Cybertruck production at 25% of targets
  • Model 3 Highland refresh delayed in North America

Financial Pressures:

  • Operating margins fell from 19% (2021) to 8% (2023)
  • $18B debt load with rising interest expenses

5. Technological Crossroads

Autonomy Delays:

  • Full Self-Driving (FSD) still at Level 2 after 10+ years
  • Major competitors (Waymo, Cruise) deploying robotaxis

Battery Innovation:

  • 4680 cells not meeting energy density targets
  • Chinese competitors achieving faster charging speeds

Potential Succession Scenarios and Implications

Internal Candidates Analysis

1. Drew Baglino (Former SVP Powertrain & Energy)

  • Strengths: Deep technical expertise, 18-year Tesla veteran
  • Weaknesses: Limited public-facing experience, resigned April 2024

2. Tom Zhu (SVP Automotive)

  • Strengths: Turned around China operations, production expert
  • Weaknesses: Limited autonomy/AI experience

3. Lars Moravy (VP Vehicle Engineering)

  • Strengths: Product development leader, respected internally
  • Weaknesses: Unknown strategic vision

External Possibilities

Wildcard Option:
Could Tesla recruit an auto industry veteran like:

  • Jim Farley (Ford CEO)
  • Herbert Diess (Former VW CEO)

Tech Industry Options:

  • Jennifer Tejada (Former PagerDuty CEO)
  • Gwynne Shotwell (SpaceX COO)

Investor Perspectives: What the Street Is Saying

Bull Case:

  • “Musk is irreplaceable as a tech visionary” – Dan Ives, Wedbush
  • “Succession planning doesn’t equal imminent change” – Adam Jonas, Morgan Stanley

Bear Case:

  • “The board has failed shareholders by not planning sooner” – GLJ Research
  • “Tesla needs an operational CEO to complement Musk’s vision” – Bernstein

Institutional Investor Sentiment:

  • Vanguard and BlackRock both supported shareholder proposals for better succession planning
  • 32% of votes favored independent chair proposal in 2023 (up from 26% in 2022)

Historical Precedents: Lessons From Tech Leadership Transitions

Successful Transitions:

  1. Microsoft (Ballmer → Nadella)
    • Key: Clear succession pipeline
    • Result: $500B+ value creation
  2. Apple (Jobs → Cook)
    • Key: Multi-year transition period
    • Result: Maintained innovation while scaling

Failed Transitions:

  1. Uber (Kalanick → Khosrowshahi)
    • Issue: Crisis-driven change
    • Result: Years of instability
  2. WeWork (Neumann → SoftBank takeover)
    • Issue: No planning
    • Result: Near-collapse

The Path Forward: Strategic Recommendations

For Tesla’s Board

  1. Formalize Succession Plan
    • Identify 2-3 internal candidates
    • Establish mentorship program
  2. Enhance Governance
    • Add independent directors
    • Separate Chair/CEO roles
  3. Manage Transparent Communication
    • Public roadmap for leadership development
    • Clear timelines for any transitions

For Investors

  1. Monitor These Key Metrics:
    • Musk’s time allocation (via jet tracking, public appearances)
    • Board refreshment (any new independent appointments)
    • Succession-related disclosures in next proxy statement
  2. Engagement Priorities:
    • Push for formal succession committee
    • Advocate for board independence

Conclusion: Why This Matters Beyond Tesla

The Tesla leadership saga represents a case study in:

  • Founder-led company challenges
  • Board governance in disruptive tech
  • Investor rights in high-growth firms

As Ark Invest’s Cathie Wood recently noted: “The market isn’t pricing in the key person risk at Tesla. When that changes, it could be dramatic.”

The coming months will prove crucial. Will Tesla:

  • Double down on Musk’s leadership?
  • Begin a gradual transition?
  • Face a crisis-driven change?

One thing is certain: How Tesla navigates this challenge will shape not just its future, but the broader conversation about leadership in transformative companies.

Last night, an audacious new automaker named Slate Auto unveiled its first vehicle—a minimalist, no-frills electric truck designed to combat America’s obsession with oversized, overpowered vehicles. With a target price under $20,000 (after incentives), 150 miles of range, and stripped-back design, the Slate Truck is a bold experiment in right-sizing personal transportation.

But will it succeed in a market dominated by monster trucks and SUVs?


Why America’s Obsession With Bigger Trucks Is a Problem

1. The Rise of the “Land Yacht”

  • In 2024, trucks and SUVs made up 75% of new vehicle sales—up from just 50% a decade ago.
  • The average new car now weighs over 5,000 lbs (2.27 tons), with EVs like the Ford F-150 Lightning pushing 6,500 lbs.
  • Bigger vehicles = deadlier roads:
    • Pedestrian deaths surged 57% from 2013–2022 (NHTSA).
    • Trucks with tall hoods (40+ inches) are 44% more lethal (IIHS).

2. The “Compact Truck” Is Nearly Extinct

  • Ford Maverick (2024):
    • 199.7 inches long, 83.5 inches wide
    • Considered “small” by today’s standards
  • Slate Truck:
    • 174.6 inches long, 70.6 inches wide
    • Closer in size to a classic 1985 Toyota pickup

“Our roads are packed with roving land yachts. The Slate Truck is a throwback to when vehicles were sized for humans, not egos.”


Slate Truck: What You Get (And What You Don’t)

✅ The Good: Simple, Affordable, Functional

✔ **20KPriceTag∗∗–Halfthecostofanaveragenewcar(20KPriceTag∗∗–Halfthecostofanaveragenewcar(49,740).
✔ No Bloatware – No touchscreen, no stereo, no paint (keeps costs down).
✔ Smartphone-Centric – Uses a phone/tablet mount + basic gauge cluster.
✔ Practical Hauling – 1,433 lbs payload, 1,000 lbs towing (enough for most users).

❌ The Trade-Offs

  • 150-Mile Range – Fine for city use, but not for road trips.
  • No Luxury Features – If you want Apple CarPlay or a premium sound system, look elsewhere.
  • Aftermarket Customization Required – Want paint? A stereo? You’ll have to DIY.

Could This Be the Start of a “Small Truck” Revival?

Why the Timing Might Be Right

  • EV Incentives – Federal tax credits could keep prices under $20K.
  • Younger Buyers – Gen Z and Millennials prefer affordability over status symbols.
  • Urban Living – Smaller trucks are easier to park in cities.

The Biggest Challenges

⚠ Consumer Psychology – Will buyers reject a “cheap” truck in a premium-obsessed market?
⚠ Political Risk – A Trump win could kill EV tax credits, raising the price.
⚠ Production Realities – Most EV startups fail. Can Slate deliver by 2026?


Verdict: A Long Shot, But a Necessary One

The Slate Truck isn’t for everyone—but it doesn’t need to be. If even 5% of truck buyers opt for a smaller, cheaper, more efficient alternative, it could shift the auto industry’s trajectory.

Final Question:

Would you drive a $20K electric truck with no frills?

  • Yes, if it saves money!
  • No, I need more power/luxury.

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