The spotlight is now on a new Kia project—a pickup truck built around the popular Telluride, aimed squarely at the U.S. market.
Fresh signals from the auto industry suggest that rising tariffs, higher import costs, and cooling enthusiasm for EVs have dealt a serious blow to Kia’s plans for an all-electric pickup. In response, the brand appears to be rethinking its strategy and shifting toward more practical, near-term solutions at a moment when long-standing assumptions are starting to crack. Against this backdrop, one project stands out: a Kia pickup based on the well-known Telluride. Digital renderings of the truck have already surfaced online, and the project is reportedly known internally as the Kia Mohave 2026.
The biggest headache for Kia comes down to import tariffs on both vehicles and components shipped from South Korea. While U.S. duties on imported cars were recently reduced from 25 percent to 15 percent, plenty of other fees remain stubbornly high. Metal tariffs, in particular, are a major issue. Steel and aluminum are essential for modern pickups, and higher costs for those materials quickly eat into margins. With electric vehicles, the problem gets even worse once you factor in batteries and complex electronics. All of that drives prices up to a point where competing head-to-head with established players like the Ford F-150 Lightning or Rivian R1T becomes unrealistic.
Kia’s U.S. leadership has quietly acknowledged that, under current conditions, building a fully electric pickup simply doesn’t make financial sense and doesn’t align with the company’s long-term planning. At the same time, interest in EVs across the U.S. market has been losing momentum. The end of the $7,500 federal tax credit has noticeably cooled buyer enthusiasm, especially in the mid-price range where Kia typically competes.
Industry analysts note that demand for electric cars has softened across the board, making the launch of any new EV product far more challenging than it was just a couple of years ago. That reality puts Kia in a tough spot: to compete on price and features with established brands would require aggressive discounting, and right now, that kind of price war simply isn’t on the table.