Lotus's next supercar will use a 670-hp hybrid V-8 from Horse Powertrain

A hot-V V-8 designed for hybrid duty

The W40 is a 4.0-litre twin-turbocharged V-8 in a hot-V configuration, with the turbochargers mounted between the cylinder banks rather than on the outside of the engine. Horse quotes 670 horsepower and 590 pound-feet of torque from the combustion engine alone, at a weight of 441 pounds.

Horse says the engine was designed from the start around a hybrid system rather than adapted to one afterwards. Lotus's claim of at least 986 hp applies to the complete hybrid powertrain, not the V-8 on its own.

The gearbox is Horse's own eight-speed dual-clutch unit, the 8LDCT, using a wet dual clutch that the supplier says can deliver shift responses under 20 milliseconds, along with a silicon-carbide control system and a variable-displacement mechanical pump. Both the engine and transmission are set to make their debut in the Lotus.

Timing, naming and what is still open

Lotus intends to reveal and launch the model in 2028. The Esprit name is not yet officially attached: the car is confirmed only as Type 135, with the Esprit badge the widely expected choice.

Lotus has not announced pricing, the car's battery capacity, its electric-only range or charging figures, and no range test cycle has been published for the hybrid system. Those details are likely to arrive closer to the 2028 launch.

For buyers, the significance sits in the engine's output: a 670-hp V-8 forming part of a 986-hp-plus hybrid is a different proposition from the smaller forced-induction engines that have powered recent fast Lotuses. The choice of a bespoke V-8 and bespoke dual-clutch, rather than an off-the-shelf combination, suggests Lotus is treating this car as a flagship rather than a stopgap.

The average transaction price for a new vehicle in the United States passed $51,000 for the first time in October 2026, reaching $51,109, according to Kelley Blue Book data. That is $649 above September, a 1.3 percent monthly rise and 2.1 percent higher than October 2025.

The record reflects what buyers are choosing as much as what dealers are charging. Kelley Blue Book attributes the new high to the growing popularity of larger, more expensive SUVs and pickup trucks, and the average manufacturer's suggested retail price climbed alongside it to $52,933, up 1.4 percent month on month and 2.4 percent year on year.

Mid-size SUVs take the volume lead

Mid-size SUVs became the industry's highest-volume segment in October, displacing compact SUVs, which held the top spot in September. Sales volume in the segment rose almost 10 percent year on year.

The average transaction price for a mid-size SUV was $50,570, up 1.9 percent from a year earlier. Full-size pickups cost considerably more at $67,912, a 1.4 percent annual increase.

Compact SUVs averaged $37,895 (up 4.3 percent), subcompact SUVs $31,333 (up 1.9 percent) and compact cars $28,030 (up 3.4 percent). Those five segments together accounted for 64.4 percent of all new-vehicle sales in October.

The pattern is straightforward: the segments gaining share are the expensive ones. When mid-size SUVs outsell cheaper compact SUVs, the industry average moves up even if no individual sticker changes, which is exactly the dynamic behind October's record.

EV prices fall year on year but rise month on month

Electric vehicles moved differently. The average transaction price for a new EV hit $56,220 in October, 1 percent above September but 2.7 percent below October 2025.

EV buyers are also receiving far deeper discounts. Incentives averaged 11.3 percent of EV transaction prices, against 6.8 percent across the industry.

Tesla's average transaction price was $54,194, lower than in September but 1.2 percent higher than a year earlier. Kelley Blue Book links the annual increase to stronger sales of the now-discontinued Cybertruck, estimating Tesla sold 1,914 of the electric pickups in October, its best monthly showing in more than a year, at an estimated average transaction price of $92,380.

That a discontinued model is lifting a brand's average price is a quirk worth noting: the Cybertruck's price point sits far above Tesla's other vehicles, so a stronger month for it pulls the brand figure upward regardless of what happens elsewhere in the range.

Discounts are not coming to the rescue

With transaction prices above $51,000, affordability remains a major challenge for the industry, and incentives are still relatively restrained, so shoppers should not expect discounts to bring prices down soon.

The annual increase of 2.1 percent is modest by historical standards, but it compounds on an already high base. For buyers, the practical effect is that the affordable end of the market is shrinking in relative terms: compact cars at $28,030 are the cheapest of the five biggest segments, yet they are also the segment losing the volume crown.