Tesla luxury rival Cadillac unveils low-priced entry-level EV

Whenever automobile enthusiasts think of luxury vehicles, many of the iconic car brands come to mind. People often envision Rolls-Royce, Bentley, Porsche, Lamborghini, Ferrari and Maserati when considering luxury cars. Jaguar, Mercedes-Benz, BMW and Volvo also come to mind.

Since Tesla rolled out its first vehicle, the Roadster, in 2008, it has been considered a luxury automobile company. It has added more luxury models over the past 15 years, including the Model X large luxury SUV and the Model S Plaid.

Related: Tesla's top rival unveils the latest Model Y competitor

When it comes to luxury automobiles, electric vehicle industry leader Tesla was the top seller of luxury models in 2022 with 484,351 sold after overtaking BMW, which was the No. 1 seller of luxury cars in 2021, according to Statista.

BMW was No.2 with 327,930 luxury vehicles sold in 2022 and Mercedes-Benz was No.3 with 269,510 cars sold. Tesla is likely to maintain its hold on the title of top luxury car seller in 2023, since it says it's on target to sell about 500,000 more vehicles this year than last on its way to its goal of 1.8 million vehicles sold. Tesla sold about 1.31 million vehicles in 2022.

Tesla gets more competition from Cadillac

Tesla will get more competition from General Motors'  (GM) - Get Free Report luxury division Cadillac, which has plans to roll out new electric models over the next year. Its current lineup of EVs includes the 2024 Lyriq compact SUV, which has a manufacturer's suggested retail price of $58,590. The Lyriq has an all-wheel drive range of 307 miles and rear-wheel drive range of 314 miles.

Earlier this year, GM launched a price reduction campaign to try to compete against Tesla, BYD  (BYDDY) - Get Free Report and NIO  (NIO) - Get Free Report and other luxury EV makers in China, as it recently cut the Cadillac Lyriq EV prices by 14% from a starting price of about $60,730 to $52,443.

Cadillac in June 2022 began selling its first EV in China, the Lyriq sports utility vehicle for $67,200, but it was forced to lower prices after Tesla began decreasing prices.

The EV maker's ultra luxury Celestiq sedan is expected to go into production in December 2023 with an expected MSRP north of $300,000, the automaker's website said.

Finally, the 2025 Cadillac Escalade IQ with an estimated 450-mile range and starting price of about $130,000 will be available for purchase in late 2024, the website says.

Cadillac shows entry-level Optiq 

Cadillac on Nov. 17 confirmed that it will add its least-expensive entry-level model to its current lineup of three electric vehicles when it rolls out its 2025 Optiq compact sports utility vehicle in the U.S. sometime next year.

The Optiq's pricing will come in below the Cadillac Lyriq, the automaker said in a statement, but additional details, including available features and specific pricing, will be unveiled in 2024.

GM has already filed papers with China's Ministry of Industry and Information Technology to sell the new all-electric Optiq SUV in China. The version of the Optiq to be sold in China will offer a 150kW single motor version and a 180 kW single motor. Its electric packs will be a joint venture of GM and SAIC Motor Corp. and will be manufactured at the GM-SAIC plant in Wuhan, China.