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They've said the max torque of the EV is 1000+ ft/lbs. Based on similar number from Rivian, we can guess on the order of 800hp. The gas generator will not produce anywhere near that kind of power.

I think this is the point that an awful lot of people are missing.

Anyone seen a list of the 16 cities?

Pretty sure this is just because it's a prototype. There's a video of the pickup tailgate where that trim isn't even attached at all - just a loose piece that the guy had to put in place. The final trim will almost certainly be automatic just like in a Rivian.

One configuration gets you ~350 miles and the other gets you ~500. Five hundred is more than 350 so it will be more expensive regardless of the cost to manufacture it.