2026 BMW 550e Review: Better Than the M5 (Seriously)

Article Summary

• 63 mpg average, 54-mile electric range in city (vs 34-mile EPA), 36+ mpg at highway speeds prove practical daily-driver efficiency
• 483 hp, 516 lb-ft, 0-60 in 4.1 seconds matches the legendary V10 M5 without the fuel consumption penalty
• Air suspension rivals iX for comfort, 500+ mile highway range vs M5’s 250 miles, exceptional quietness make it the most practical 5 Series daily driver

Back in 2020, I remember seeing the news about the G30 BMW 5 Series facelift. In Germany, they got a new plug-in hybrid model called the 545e. I read all about it. To me, it seemed like the perfect BMW I would want. A plug-in hybrid that could get 35 miles of electric range for commuting but still had the power and presence of a turbocharged inline-six-cylinder engine. That seems like the best of both worlds. “I wish we got that here,” was thinking.

In America, we only got the 530e for the G30 generation. While this car is fine if you’re efficiency-minded, it wasn’t exciting. The 330e existed too. The smaller car maybe felt fine with the four-cylinder PHEV system, but the larger 530e is a bit sluggish and uninspiring with that powertrain.

But with BMW’s lineup in North America, there just wasn’t room for another model to fit in their portfolio given the 5 Series models available to the US and what US buyers were looking for. Want a fast 5 Series? Get an M5. Don’t quite have the money for one? Get an M550i. Want something efficient? Get a 530e. Want to save money? Get a 530i.

The 540i remains a great all-around car but still lacks the performance or efficiency that either end of the model range has to offer. “I bet the 545e would be such a great car to own,” was thinking again.

Luckily, over five years later, I got to drive its successor, and this time, I get to drive it because it is now available in the G60 generation 5 Series as the 550e. This car didn’t just live up to my own hype; it exceeded it. Of the three different variants of the G60 generation I have driven over the last two years (i5 eDrive 40 and M5 Touring), this is the one I would actually want in my garage.

Yes, even more than the M5. Let me explain.

Love The M5, But Too Expensive

The M5 is an absolute beast. While some hate the PHEV addition of it and the weight, the power coming from the S68 4.4L V8 in conjunction with the electric motor is shockingly quick. It is heavy and big, but so is a Nimitz-Class aircraft carrier that can do over 30 knots on the open ocean. Putting the equivalent of a nuclear reactor in a car can make any amount of mass move very quickly.

However, the M5 is very stiff. It is also very inefficient the moment the battery runs out. As far as road tripping goes, this is one area the new M5 falls a little short since it only has roughly 250 miles of range on a tank of gas. There is a gap in practicality and performance with the M5. It is wildly capable on track, a backroad, or a stoplight drag race. It is also shockingly efficient plugged in and running on electric. But when it comes to driving longer distances—something BMWs have historically been great at—it leaves a bit to be desired.

The BMW 550e: Comfort Meets Efficiency

Then there is the 2025 BMW 550e. On a daily basis, it is a much more comfortable car to drive. The tuning of the air suspension is much more compliant on normal roads. Full stop, this is nearly tied with the iX for the most comfortable modern BMW I’ve driven. The rebound and compression are much more forgiving and less jarring compared to the M car. This isn’t just a much more comfortable riding car; it’s much more efficient too.

On gas only or hybrid mode at highway speeds, the 550e is still able to achieve impressive numbers for such a large vehicle. On a nearly two-hundred-mile road trip in Southern California, I was easily able to achieve over 36 mpg at roughly 75 miles per hour. That gives this plug-in hybrid a highway cruising range of over 500 miles with the 15.9-gallon fuel tank. You can easily and comfortably drive this car across the country.

In fact, I don’t know many cars in BMW’s lineup outside of a 740i or X5 that might do the job better.

Real-World Electric Range: Better Than EPA Estimates

The electric performance of the BMW 550e is impressive in its own right. While the EPA estimates 34 miles of electric driving range from the 19 kWh usable battery, the car has actually achieved much more in real-world driving. In city driving and the crawling freeway traffic around LA, my 550e got as high as 54 miles on a single charge. Most days, achieving 45 miles was easy in mixed driving conditions.

Given that the average American drives only 37-40 miles per day, there is a strong chance you may never need to use the gas motor if you just commute. While many complain that plug-in hybrids are “the worst of both worlds,” I disagree. Modern PHEVs like the 550e combine so many good qualities of both gas and electric without the downsides that I would argue this car is the best of both worlds.

It’s functionally a great EV for daily driving but also a very convenient, quick, and pragmatic road-trip hybrid gas car. It offers great sounds with the inline-six, plenty of character, but still makes you feel like you are doing your part to reduce emissions because, well, you are. I drove just under 1,000 miles on a single tank of gas, and charging this car each night or when an EV charging spot was available in public was actually easier to live with than relying on gas alone.

People forget that many cities have a very robust Level 2 charging infrastructure, and sometimes the dedicated EV charging spots are not only the most conveniently located but sometimes the only ones open. Plugging in for a few dollars to get 45 miles of electric range in about two hours isn’t just convenient; it actually feels like a car ownership life hack.

Performance That Flies Under the Radar

But what I love about the 2025 BMW 550e is not only the efficiency; it’s how much performance this car offers in something that flies under the radar. Looking at the power and acceleration figures of this car reminded me of another BMW 5 Series—the E60 M5. That V10-powered super sedan had 500 hp and 384 lb-ft of torque and does 0-60 in 4.1 seconds.

The 2025 550e has 483 hp and 516 lb-ft of torque and can do 0-60 in 4.1 seconds. The mid-level, efficiency-focused 550e is just as quick as a V10-powered M5. It’s only down 17 horsepower but with much more torque. The fact this car got an average of 63 mpg the week I had it without sacrificing straight-line performance is, to me, an incredibly impressive feat. I really love how little compromise I have with this car.

Interior: Good, Bad, and Missing Features

The interior of the BMW 550e is standard fare of good and bad aspects about this generation of 5 Series. While some of the material choices near your legs and feet might feel cheap, the rest is a great design with interesting finishes in something that feels well-screwed-together. It is incredibly quiet.

iDrive 8.5 remains the same as in other BMW models and is fairly easy to use, but we still miss the physical HVAC controls of iDrive 7 and earlier. The interior feels very ergonomic. Seat comfort is excellent, but I found it strange for an $85,000 car that seat cooling and seat massage were missing as they are available or standard on much cheaper cars. The standard sound system is actually fine, but considering how much better the Bowers and Wilkins sounds for only $950, it’s worth the upgrade.

The Verdict: A Well-Rounded Sleeper

I honestly found very little I didn’t like about this car. Sure, as a PHEV it has slightly less trunk space compared to a pure ICE or EV G60, but then again, at 18.4 cu-ft., it’s still a big trunk—just maybe not for something this size. Outside of that, it offers the best of both powertrains.

There is a lot of convenience and performance with this powertrain with very little downside. It’s comfortable but still sporty. It’s efficient yet fast. Honestly, this was my favorite of the lineup that I’ve driven so far. It’s not common you’ll see a 550e as only about 1,000 are sold every year (from the sales data we could gather, but BMW North America was not able to give us a more accurate number).

Despite the badge having an “e” instead of an “M,” this car is so much more capable than people realize, and it is very much a sleeper. I think you would be doing yourself a disservice if you didn’t look at this car for your next daily. It may be expensive, but this might just be the most well-rounded BMW sedan on sale today.