Cadillac's EVs are attracting new buyers, including more customers trading in Teslas
DETROIT — Cadillac's expanding all-electric vehicle lineup is attracting a notable number of new buyers to the American luxury brand, including an increase this year of Tesla owners trading in their EVs.
The General Motors brand reports nearly 8 out of every 10 customers purchasing a Cadillac EV are new to Cadillac, with around 10% of those customers trading in a Tesla. That includes roughly 25% of customers trading in a Tesla this year for a Cadillac Lyriq SUV, up from prior levels of about 10% to 15%.
"We see the opportunity to increase the conquest rate for Tesla, absolutely," Brad Franz, Cadillac director of global marketing, told CNBC during an event for the Vistiq three-row SUV — the brand's latest EV to hit U.S. showrooms.
That increase in customer conquesting, as the industry refers to it, comes as Cadillac offers a relatively full lineup of EVs and as Tesla faces declining sales and boycotts this year amid CEO Elon Musk's support of President Donald Trump and his actions as part of the so-called Department of Government Efficiency, or DOGE.
Cadillac declined to speculate on if Musk's politics played into Tesla owners' thinking, saying the carmaker is "building great Cadillacs that are conquesting customers from other brands on the merits of the products."
Cadillac's current EV lineup includes an entry-level crossover called the Optiq, the midsize Lyriq SUV, the Vistiq, the Escalade IQ full-size SUV and soon a $300,000-plus bespoke Celestiq car. It also offers a performance variant of the Lyriq and a larger version of the Escalade IQ.
"The portfolio is the key," Franz said. "We've always had good interaction with Tesla customers, but in the past, that's been in that 10% to 15% range [for Lyriq]. So, certainly, we're seeing a good jump in conquest rate."
While Cadillac has had some luck luring Tesla owners, there's still room for improvement.
No Tesla vehicle is in the top 10 of any cross-shopped Cadillac EV over the past six months, according to Edmunds.com, meaning the majority of those customers aren't searching for Teslas against a Cadillac. The consumer vehicle research and data firm reports the top cross-shopped vehicles on its website for Cadillacs are largely other Cadillac EVs, as well as other domestic nameplates.
A potential reason for that could be that Tesla owners are not actually cross-shopping against their vehicle, just trying to find a new one, according to Joseph Yoon, Edmunds' consumer insights analyst.
"People leaving Tesla cars now, they're, in my opinion, making a very deliberate choice to get out of that car," he said. "If your priority is to get out of the Tesla ASAP, then they're not, technically, cross-shopping Tesla for their next car."
Yoon said it's common for vehicles from the same brands to be highly cross-shopped, adding the data is from its website and not representative of dealer trade-ins.
Edmunds reports the top cross-shopped vehicles for the Cadillac Lyriq — the brand's EV sales leader — are the Cadillac Optiq, Acura ZDX, Ford Mustang Mach-E and BMW 1X. They are followed by the Kia EV9 and the Chevrolet Blazer and Equinox EVs.
For Tesla models, Edmunds reports other Tesla models top consumers' cross-shopping searches, as well as many Honda, Hyundai and Kia vehicles. The Chevrolet Equinox EV, GMC Hummer EV and Ford Mustang Mach-E are in the mix as well, depending on the model.
Yoon also noted that although Tesla and Cadillac may offer vehicles in similar price points, Tesla's top-selling models — the Model 3 and Model Y — are more mainstream cars than luxury.
Cadillac's target this year is to be the bestselling luxury EV brand, which does not include Tesla, although there is a valid argument that the more pricey Model S and Model X are luxury vehicles.
"Cadillac is leading the way with our EV lineup," Franz said during the Vistiq event. "We're really poised for success. We're going to take this portfolio, now that Vistiq is rounding out the SUV portfolio, and become the No. 1, tier-one EV luxury brand."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wall Street Journal
31 minutes ago
- Wall Street Journal
What's Good for Politicians Is Good for General Motors
General Motors CEO Mary Barra earned $29.5 million last year, and it's hard to argue that she isn't earning her keep. The automaker sold more cars in the U.S. than any other company last year, and its profits have doubled in her 11 years as CEO. Credit her ability to please her most important customers—politicians. Their command is her wish. While doubling down on manufacturing profitable gas guzzlers, Ms. Barra promoted electric vehicles to ingratiate herself to Democrats who want to eliminate the products that churn out profits for her company. She again proved her flexible principles last week by praising President Trump's auto tariffs, which the company estimates will dent its profits by $5 billion this year. 'I think tariffs is one tool that the administration can use to level the playing field,' she said. What she omitted is that the playing field has been tilted in GM's favor for decades by a 25% tariff on pickup trucks, which gives domestic automakers an effective monopoly. Also: Mr. Trump's new 25% tariffs on all cars and parts not made in the U.S. will hurt GM, but they will wallop its foreign competitors even more. In 2018 Ms. Barra got a crash course in politicking when she announced a corporate restructuring that involved closing four U.S. plants that produced low-selling sedans. Her goal was to make GM leaner and more profitable. In this she succeeded, but she blundered by not throwing a bone to Mr. Trump, who thinks CEOs answer to him.
Yahoo
an hour ago
- Yahoo
I'm a Car Expert: 5 Most Improved Luxury Cars That Are Now Worth Your Money
When it comes to wealthy luxury vehicles, most buyers gravitate toward long-established German brands. But according to Alan Gelfand, owner of German Car Depot — with over 30 years of experience servicing BMW, Mercedes-Benz, Audi and Porsche vehicles — it's time to expand our view. For You: Trending Now: 'The luxury experience market no longer depends on German brands because alternative manufacturers now provide comparable premium experiences at lower prices,' Gelfand said. Here are the most improved luxury cars Gelfand recommends buying now and why they're worth your money. Why they're worth it: Once dismissed for their Hyundai roots, the Genesis G90 and G80 (2022 and newer) have evolved into serious contenders in the luxury space. Gelfand said Genesis recruited engineers from German brands and it shows. 'The engineering divisions of Genesis and Cadillac established partnerships with employees who previously worked at German automakers. The suspension settings and interior materials and overall sophistication of these vehicles demonstrate a clear enhancement,' Gelfand said. Read Next: Genesis also offers a 10-year powertrain warranty, which is significantly longer than the four years offered by BMW and Audi, making it a more cost-effective option to own. Gelfand estimated owners save 40% to 50% on maintenance over five years compared to a Mercedes S-Class. Why they're worth it: Cadillac's Blackwing sedans (2022 to 2024) pair American muscle with premium refinement. Powered by a supercharged V8 from the Corvette Z06, the CT5-V Blackwing delivers over 650 horsepower (according to Cadillac's website) with the option of a manual transmission, an increasingly rare feature. 'The construction quality and interior components of these vehicles match the standards of BMW M vehicles,' Gelfand said. Low production numbers and strong enthusiast demand are already pushing resale values higher. Gelfand believes these will become future collectibles. Why it's worth it: The Lexus LS 500 has always been known for reliability, but newer models (2021 and Newer) deliver a more complete luxury experience. The 2021 refresh introduced significant enhancements to ride quality and infotainment, two areas where Lexus had previously lagged. 'The brand stands as a proper competitor to S-Class luxury vehicles,' Gelfand said. For buyers who value peace of mind and long-term durability, the LS 500 is a smart pick. Looking ahead, Gelfand is keeping an eye on several luxury EVs poised to shake up the market: BMW iX M60: With up to 610 horsepower and adaptive air suspension (according to BMW's website), the iX M60 delivers the dynamic handling expected from a BMW, even as an electric SUV. Mercedes-Benz EQS (2025): A larger battery and updated software aim to fix early issues (according to Mercedes-Benz's website), making the 2025 EQS more refined and range-efficient. Genesis Electrified G90: Expected to carry over Genesis's award-winning design and build quality, this flagship EV could disrupt the high-end luxury electric segment. Gelfand said we're in the middle of a major shift in the luxury car world. 'The luxury experience market no longer depends on German brands because alternative manufacturers now provide comparable premium experiences at lower prices,' he said. While German brands still lead in brand prestige, they're no longer the only way to get a premium driving experience. Today's most improved luxury cars offer competitive quality, cutting-edge tech and in many cases, better long-term value. Editor's note: Vehicle prices range depending on vehicle's year. More From GOBankingRates 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) The New Retirement Problem Boomers Are Facing This article originally appeared on I'm a Car Expert: 5 Most Improved Luxury Cars That Are Now Worth Your Money
The Hill
an hour ago
- The Hill
Musk talks about Trump administration in CBS interview — despite asking to avoid the subject
Elon Musk offered his opinion on the Trump administration in an interview shortly after he departed from the White House, despite initially saying he only wanted to talk about 'spaceships,' rather than 'presidential policy.' In an interview with 'CBS Sunday Morning,' the former Trump adviser told CBS Correspondent David Pogue that he only wanted to talk about 'spaceships' when asked about the recent crackdown on foreign student visas, with Pogue mentioning Musk was one of those students at one time. 'I mean, I think we wanna stick to, you know, the subject of the day, which is, like, spaceships, as opposed to, you know, presidential policy,' Musk said. 'Oh, okay,' Pogue said. 'I was told anything is good, but-' 'No, well—no,' Musk replied. Pogue followed up by asking Musk about DOGE and its impact on Tesla, of which Musk is the CEO. Last month, Tesla reported a 71 percent drop in earnings before Musk announced he would be stepping back from DOGE. Musk said what was 'starting to happen' was a bit unfair,' adding that DOGE 'became the whipping boy for everything.' 'If there was some cut, real or imagined, everyone would blame DOGE,' he continued. 'I've had people think that, like, somehow, DOGE is gonna stop them from getting their Social Security check, which is completely untrue.' Musk added that he's a 'proponent of smaller government, not bigger government.' Musk, without being asked about the Trump administration, went on to say that 'it's not like I agree with everything the administration does.' 'I mean, I agree with much of what the administration does. But we have differences of opinion,' Musk continued. 'You know, there are things that I don't entirely agree with. But it's difficult for me to bring that up in an interview because then it creates a bone of contention. So then, I'm a little stuck in a bind, where I'm like, well, I don't wanna, you know, speak up against the administration, but I also don't wanna take responsibility for everything this administration's doing.' Musk left his role at the White House last week due to the time limit on his status as a special government employee expiring. Upon first entering his role in the White House, Musk talked grand ambitions of slashing federal spending and chipping away at the U.S. debt. However, after months of service, Musk has grown increasingly critical of the president's fiscal policies as his own efforts fell short.
