Cadillac Gains EV Market Share as Tesla Owners Switch to GM

Cadillac is gaining market share as Tesla owners trade in their vehicles for General Motors’ expanding electric vehicle (EV) lineup, according to recent data and company statements. Nearly 80% of Cadillac EV buyers are new to the brand, with roughly 10% being former Tesla drivers, Cadillac reported.

The shift aligns with Cadillac’s introduction of a broader range of EVs and Tesla’s declining sales, which have been influenced in part by boycotts linked to CEO Elon Musk’s political involvement and his role in the Department of Government Efficiency (DOGE) under President Donald Trump.

Brad Franz, Cadillac’s director of global marketing, noted that Tesla drivers are an increasingly important source of new customers. “We see the opportunity to increase the conquest rate from Tesla, absolutely,” Franz said during the unveiling of the 2026 Vistiq EV, Cadillac’s latest all-electric three-row SUV.

Cadillac emphasized that customer choices are driven more by product quality than politics. “We are building great Cadillacs that attract customers from other brands based on the merits of our vehicles,” a spokesperson said.

For the Cadillac Lyriq, about 25% of trade-ins this year have been Teslas, up from 10–15% in previous years. Cadillac’s EV lineup now includes the entry-level Optiq, midsize Lyriq, full-size Escalade IQ, performance-oriented Lyriq variants, and the ultra-luxury Celestiq, priced above US$300,000.

Despite the rise in Tesla trade-ins, data from Edmunds shows that Tesla vehicles are not among the top 10 cross-shopped against Cadillac EVs. Instead, buyers often compare Cadillacs with other domestic brands or within Cadillac’s own lineup. “People leaving Tesla now are making a very deliberate choice to move away,” said Joseph Yoon, consumer insights analyst, Edmunds.

Tesla’s US sales fell 9% in 1Q25, even as overall EV sales rose 11%, according to Motointegrator and DataPulse Research. Tesla’s market share dropped to 43.2% from 52.7%, as competitors like Porsche, Toyota, and GMC posted significant gains. Tesla’s net income fell 71% to US$409 million, and revenue declined 9% to US$19.3 billion. Its stock has dropped 46% since December 2024.

The decline reflects growing backlash over Elon Musk’s political role in the Trump administration, which has sparked protests and boycotts. Tesla’s European sales have also fallen sharply, while public approval of Musk has dropped to just 30% in recent YouGov polls in the United States and Europe. As reputational concerns mount, Tesla faces risks of losing relevance in the competitive EV market.

Franz concluded by emphasizing Cadillac’s ambitions in the luxury EV segment: “With our growing portfolio, we are positioned to become the No. 1 tier-one luxury EV brand, excluding Tesla.”