Cadillac overtakes rivals to lead US luxury EVs

Cadillac, once known for being gas-guzzling land yachts, has surged ahead in the US luxury electric vehicle market, surpassing BMW, Mercedes, Audi, and Porsche, according to The New York Times.

Nearly one in four Cadillacs sold today is electric. The sales played a major role in giving the company its strongest first half since 2008. 

General Motors (GM), Cadillac’s parent company, sold 78,000 EVs in the first seven months of the year—more than double last year—while Tesla’s sales fell 11% to 272,000, according to Kelley Blue Book.

Winning over new customers
This momentum comes as Cadillac attracts younger, tech-savvy buyers. 

Approximately 70% of customers who purchase its electric Lyriq and Optiq models previously drove other luxury cars. One in 10 of those buyers switched over from Tesla.

Challenges ahead
Yet looming challenges could slow growth. Federal tax credits of up to $7,500 for EV buyers will end September 30, and tariffs on imports have increased. 

Similar subsidy cuts in Germany caused a 27% drop in EV sales last year. 

Cadillac remains optimistic. With US-based EV production and plans to lower battery costs, it hopes to strengthen its share even as many luxury automakers scale back on electrification.