The Sneaky Way General Motors Is Catching Tesla

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In a remarkable turn of events, Tesla (TSLA) has firmly established itself as a leading player in the U.S. electric vehicle market. Initially known for its intriguing Roadster tale, Tesla has transformed into a profitable automotive company, which is not common among pure-electric vehicle companies at present. However, many were convinced that Tesla’s reign would be strong and enduring. Yet, General Motors (GM) is beginning to make waves in the market with its Chevrolet brand. Also, watch out for GM’s luxury electric vehicles, as they could potentially catch us off guard.

Providing a spark

Previously, it might have appeared that competitors were keeping a close eye on Chevrolet, but many may not have anticipated its rapid ascent. Now, Chevrolet ranks as the second-leading electric vehicle (EV) brand in the U.S., surpassing Ford and steadily narrowing the gap with the long-standing leader, Tesla.

Despite the pessimistic outlook on tariffs, trade and distribution issues, and uncertainties in long-term strategies, Chevrolet has been a beacon of success for General Motors. In fact, May was one of Chevrolet’s best months ever for electric vehicle sales, second only to its record.

The impressive outcome that was just announced can be attributed to the remarkable 94% year-on-year increase in electric vehicle (EV) sales that GM experienced during the first quarter. Moreover, this growth propelled Chevrolet to be the fastest-growing domestic EV brand. As a result of this surge, General Motors’ market share in the U.S. EV market has more than doubled, now accounting for 15.5%.

Chevrolet experienced a significant surge of 134% in electric vehicle (EV) sales during the first six months of 2025, compared to the same period last year. Interestingly, General Motors (GM) and Tesla have shown the most notable changes in annual EV delivery volume, but they’re moving in opposite directions as depicted in the graph below.

According to Automotive News, Duncan Aldred, President of General Motors in North America, stated that GM is significantly fueling the expansion of the American industry and has created a substantial gap from our longstanding competitors.

Sneaky Cadillac

During this time, Chevrolet is seeing significant sales growth, but it’s worth mentioning that Cadillac has been playing a crucial role in General Motors’ electric vehicle (EV) goals. In fact, GM is boasting that Cadillac has taken the lead in luxury EVs this year, with several high-end electric SUV models now on the roads. However, it’s important to note that when management talks about Cadillac being the “EV leader,” they are not considering Tesla because of its unique pricing structure.

2022 has seen a record-breaking first half of sales for Cadillac since the year 2008, with an increase in sales throughout all 50 U.S. states. Notably, this luxury car manufacturer is successfully attracting new consumers, a feat often considered challenging within the auto industry. Intriguingly, Brad Franz, the global marketing director for Cadillac, shared with CNBC that approximately 80% of buyers of their electric vehicles are first-time Cadillac customers.

Additionally, it’s worth mentioning that when the Cadillac Lyriq was introduced, about a quarter of its buyers were previously loyal to the Tesla brand.

Cadillac’s growth trajectory is picking up speed: In 2025 alone, General Motors’ luxury division has already introduced seven electric vehicles (EVs), aiming to fill out its entire lineup in the near future. Their plan is straightforward – if the federal EV tax credit expires at the end of September, they want to provide a diverse selection of options for consumers, ensuring they can find a vehicle that suits them perfectly.

Cadillac might secretly aid General Motors’ electric vehicle goals, as the administration’s tariff policy affects it minimally since the brand primarily manufactures its vehicles within the U.S., with only the Optiq being produced in Mexico.

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Catch me if you can

Currently, the electric vehicle (EV) industry isn’t particularly attractive to automakers, but it’s crucial for them to capitalize on the emerging market preferences among consumers. In reality, most EV models are incurring losses for their manufacturers. However, General Motors seems to be striking a chord by expanding not only its entire range of vehicles, but also strengthening the luxury segment with Cadillac – a brand known for higher profit margins.

Over time, General Motors has successfully earned consumer trust, contrasting with Tesla’s recent missteps. Notably, GM and its growing Chevrolet and Cadillac electric vehicles have significantly increased in sales rankings. Although Tesla still maintains a lead, it no longer seems impossible for General Motors to eventually close the gap.

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2025-07-20 03:18