DETROIT — Cadillac is witnessing an influx of new clientele as its all-electric vehicle lineup expands, with a significant number of current Tesla owners making the switch to the luxury brand. This year has seen a marked increase in the number of Tesla owners trading in their electric vehicles for Cadillacs.
According to reports from the General Motors brand, nearly 80% of customers purchasing a Cadillac EV are first-time buyers of the brand, with approximately 10% of these customers opting to trade in a Tesla. Notably, around a quarter of the individuals exchanging a Tesla this year are opting for the Cadillac Lyriq SUV, which represents a substantial rise from previous trade-in rates of 10% to 15%.
“We definitely see an opportunity to increase our market share among Tesla owners,” stated Brad Franz, Cadillac’s director of global marketing, in a discussion with Finance Newso at the launch of the Vistiq three-row SUV, the latest addition to the brand’s electric offerings.
This uptick in attracting new customers coincides with Cadillac’s comprehensive lineup of electric vehicles, as well as challenges faced by Tesla, including declining sales and consumer boycotts amid CEO Elon Musk’s political stances, particularly his support of Donald Trump and his initiatives under the recently created Department of Government Efficiency (DOGE).
Despite speculation about the political motivations influencing those leaving Tesla, Cadillac refrained from making assertions, emphasizing instead that their focus is on creating exceptional Cadillacs that appeal to customers across various brands through product merit.
Cadillac currently boasts a diverse array of electric offerings, including the entry-level Optiq crossover, the mid-sized Lyriq SUV, the Vistiq, the Escalade IQ full-size SUV, and an upcoming bespoke Celestiq priced above $300,000. The brand also includes a performance variant of the Lyriq and a larger edition of the Escalade IQ.
“The breadth of our portfolio is crucial,” Franz noted. “We’ve had positive interactions with Tesla customers, but historically, that conversion rate has hovered around 10% to 15% for the Lyriq. Now, we’re witnessing a significant increase in that figure.”
While Cadillac is managing to attract some Tesla aficionados, the brand acknowledges that there remains considerable room for growth.
Data from Edmunds.com indicates that no Tesla models appear in the top 10 most commonly cross-shopped vehicles with Cadillac EVs over the past six months. This suggests that a large segment of customers is not actively comparing Teslas against Cadillacs. Rather, the primary vehicles sought by Cadillac shoppers consist mostly of other Cadillac EVs and other domestic car brands.
Joseph Yoon, a consumer insights analyst at Edmunds, suggests that Tesla owners are not necessarily engaging in cross-shopping but may be focused solely on replacing their current vehicle. “Consumers leaving Tesla are making a conscious decision to move away from that brand,” he explained. “If the priority is simply to exit a Tesla, then they’re not in the market for a direct comparison to their current vehicle.”
Yoon also added that it is typical for customers to consider vehicles from within the same brand, pointing out that his data reflects online activity rather than dealer trade-ins.
Edmunds’ findings reveal the top cross-shopped vehicles for the Cadillac Lyriq, which include the Cadillac Optiq, Acura ZDX, Ford Mustang Mach-E, and BMW 1X, followed by the Kia EV9 and Chevrolet Blazer and Equinox EVs.
On the other hand, Tesla’s cross-shopping metrics indicate that its consumers tend to look at other Tesla models, in addition to several Honda, Hyundai, and Kia vehicles. The Chevrolet Equinox EV, GMC Hummer EV, and Ford Mustang Mach-E also appear on these lists, subject to the specific model in question.
Yoon remarked that even though Cadillac and Tesla’s offerings might occupy similar price ranges, the most popular Tesla models — the Model 3 and Model Y — cater to a broader market compared to the luxury category.
This year, Cadillac aims to emerge as the leading luxury EV brand in the market, excluding Tesla, although there is a notable argument to categorize the higher-end Model S and Model X as luxury vehicles.
“Cadillac is at the forefront with our electric vehicle collection,” Franz stated at the Vistiq event. “We are strategically positioned for success, and with Vistiq enhancing our SUV range, we are on track to become the top-tier EV luxury brand.”
