Even as the $7,500 tax credit ends?

Cadillac is back and selling a surprising number of electric vehicles in the US. With a full lineup of electric SUVs, Cadillac now claims to be the leading luxury EV brand in the US. Can it keep it up even after the $7,500 federal tax credit expires?

After launching seven new electric vehicles this year, GM claimed that Cadillac became the leading luxury EV brand by market share. However, that doesn’t include Tesla due to its “pricing structure.”

Cadillac is coming off its best first-half sales since 2008, selling more vehicles across all 50 states. Nearly one in four Cadillacs sold in the US this year were EVs.

GM’s luxury brand is now selling more electric vehicles than some of its biggest rivals, including Porsche, Audi, Mercedes-Benz, Rivian, and Volvo.

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According to the latest data from Cox Automotive, Cadillac sold over 11,700 EVs in Q2, up 62% compared to last year. Through the first six months of the year, it has sold nearly 20,000 electric vehicles. In comparison, Porsche has sold almost 7,200 EVs in the US, Mercedes sold about 8,000, and Audi has sold just over 11,500.

With an electric SUV in nearly every segment, including the entry-level Optiq, a midsize Lyriq, a three-row Vistiq, and the even larger Escalade IQ and IQL models, Cadillac is seeing an influx of buyers from other brands.

Cadillac prepares for the EV tax credit to expire

Around 70% of Cadillac’s EV buyers are from other brands, according to GM, and about 10% are former Tesla drivers. With big policy changes coming under the Trump administration, Cadillac, like the entire industry, will likely face some hurdles.

The administration already raised tariffs on imported vehicles and other auto parts, and at the end of September, the $7,500 federal EV tax credit is set to expire.

In response to the changes, many automakers are shifting back to hybrid and gas-powered vehicles. Cadillac is no exception.

“They’ll have to have both for a number of years now,” according to Sam Fiorani, the vice president of AutoForecast Solutions. Fiorani explained (via The New York Times) that “The gas-powered vehicles make the money, and the EVs bring them a new market.”

Cadillac was initially expected to have an all-EV lineup by the end of the decade. Thanks to the policy changes, Cadillac could continue offering hybrid and ICE vehicles for several more years.

Fiorani said that although GM planned to retire the gas-powered Escalade, it’s now due for a refresh that will be sold “well into the next decade.”

Earlier this year, Cadillac’s global vice president, John Roth, said during a media briefing that the company was in a better position than most with the policy changes.

All Cadillac vehicles are built in the US, except the Optiq, which is built in Mexico. According to Roth, the policy changes will have “very limited impact, if you will, on the Cadillac brand.” If anything, Roth said, it could be an opportunity for the luxury automaker.

If you’re looking to get ahead of the $7,500 EV tax credit expiration, we can help you get started. Check out our links below to find Cadillac’s electric SUVs in your area.