Cadillac is Pulling EV Buyers Away from Tesla

Miami Herald

2 days ago

Just a decade ago, Cadillac was struggling and hired industry veteran Johan de Nysschen to turn things around. It moved to New York City in an effort to distinguish itself from GM's more mainstream brands. It was mostly challenged with figuring out who it wanted to be, and it was an uphill battle to remain competitive against entrenched luxury rivals like BMW, Lexus, and Mercedes. The big Escalade was really the only vehicle that drew customers in, but times have changed, and Cadillac bet big on EVs just as things were starting to get interesting in the industry.
In that context, EVs were easily the best thing that's happened to Cadillac in a very long time, decades even. Cadillac has made significant progress in a highly competitive EV landscape, one that's not simply about producing EVs and riding the wave. The segment had its ups and downs, with issues like battery production, infrastructure, adoption, and more plaguing manufacturers since the beginning. Now, Cadillac has four fully electric SUVs: the Lyriq, Vistiq, Optiq, and the Escalade IQ. On top of that, there's the uber-pricey, hyper-exclusive $350,000 Celestiq sedan. These aren't niche vehicles for the brand in the way the LEAF is for Nissan. A report from Jalopnik states that Cadillac is drawing in a whole new swath of luxury car buyers, and 8 in 10 Cadillac EV owners are new to the brand.
Tesla's sales losses are a boon for Cadillac. Many former owners of Tesla's Model S ($79,990) sedan and Model X ($84,990) SUV are turning to electric Cadillacs. Those higher-end Tesla models are getting long in the tooth without a second-generation redesign and end up sitting on Tesla lots. They also don't exude luxury the way the Caddy EVs do.
The controversy surrounding Elon Musk doesn't help matters, either. His polarizing personality, political influences, and his unbridled outspokenness tend to rub some people the wrong way, and that hasn't been good for the Tesla brand. It's the right time for Cadillac, especially since its Lyriq ($60,090) and Vistiq ($79,090) both undercut the Model X. CNBC reported that these new Cadillac owners weren't cross-shopping both Tesla and Cadillac. They were actually leaving their Teslas for Cadillacs. In fact, 10% of Cadillac's trade-ins are Teslas, and a mindblowing 25% of Lyriq buyers have traded their Teslas for the Caddy model.
Even the new Optiq ($54,390) is an appealing alternative to Tesla. Not only is it a great entry-level luxury EV, but it doesn't actually look entry-level. For example, the base Luxury 1 dual motor AWD trim offers up to 302 miles of range and comes with high-end standard features such as a 33" diagonal infotainment display, a 19-speaker AKG Studio audio system, and Super Cruise driver assistance technology.
It's important to keep in mind that Cadillac still has a battle ahead of it. EV sales won't send its sales volume numbers through the roof, not yet, anyway. The stats show that the big gas-guzzling Escalade still dominates with the majority percentage of the brand's sales, with the CT5 luxury sedan in second place. The EVs are just a fraction of the brand's 2025 year-to-date sales, even though the Lyriq is currently the best-selling midsize luxury electric SUV in America. Will Cadillac's momentum continue to build, or will their EV success story be a short one? The segment will continue to grow, but the luxury EV niche is a challenging one, especially since many buyers want cheaper EV models.
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