The automaker said it plans to sell just 23,600 over the next three years, CNN reported Monday.
The Rav4 EV, selling for $49,800, will have a driving range of approximately 100 miles with an expected 6 hour charge time on a 240 volt charger, Toyota said.
In comparison, the most expensive gasoline-powered Rav4 carries a $29,000 base price.
Rav4 EV Buyers will find features like heated seats and an 8-inch touch-sensitive computer screen included in the list price, which does not take into account a $7,500 federal tax credit for purchasing a plug-in vehicle and a $2,500 California tax credit.
"It's designed for consumers who prioritize the environment and appreciate performance," Bob Carter, group vice president of Toyota Motors Sales U.S.A.'s Toyota division, said.
"We look forward to seeing how the market responds."
Toyota will build the vehicles but the batteries and electric drive systems will be provided by California-based electric car maker Tesla Motors, CNN reported.