Cadillac, the luxury brand of General Motors, has revealed the name of its upcoming entry-level electric vehicle: Optiq. The compact-sized crossover will be the fourth EV in Cadillac’s portfolio, following the Lyriq, the Celestiq and the electric Escalade.
The Optiq is expected to go on sale in the U.S. as early as next year, with a global launch in 2025. It will be priced below the Lyriq, which starts around $59,000. Cadillac has not disclosed any other details about the Optiq, such as its range, performance or features.
The Optiq is part of Cadillac’s ambitious plan to exclusively offer EVs by 2030, in line with GM’s goal to eliminate tailpipe emissions by 2035. However, Cadillac faces challenges in achieving this vision, as it has been slower than expected to roll out and produce EVs, due to supply chain problems and battery cell production issues.
Cadillac’s first EV, the Lyriq, has sold fewer than 5,400 units through September, despite receiving positive reviews from critics and customers. Cadillac hopes to boost its EV sales by expanding to new markets, such as Australia and New Zealand, where it will offer a right-hand-drive version of the Lyriq.
“Cadillac is experiencing great sales momentum thanks to our strong product portfolio — and we are now expanding our business globally,” said John Roth, vice president of Cadillac, in a statement. “The introduction of a right-hand-drive Lyriq will enable new opportunities in important markets where EV adoption is strong.”
The Optiq will compete with other compact EV crossovers, such as the Tesla Model Y, the Ford Mustang Mach-E and the Hyundai Ioniq 5. It remains to be seen whether the Optiq will be able to attract new customers to Cadillac and help the brand achieve its EV goals.
According to Barrons: Cadillac’s existing offerings of battery electric vehicle, or BEVs, include the LYRIQ and the CELESTIQ. An electric Escalade is planned
Investors have been questioning the outlook BEV sales growth lately, partly because of GM’s decision to delay some EV spending to better match supply and demand. Still, Cadillac’s BEV results have been pretty good.
The OPTIQ might be giving GM stock a slight boost. Shares rose 1.1% in early trading Friday, while the S&P 500 SPX 0.24% and Dow Jones Industrial Average DJIA 0.09% both fell about 0.1%.
Shares have suffered a lot recently due to high interest rates, the UAW strike against the Detroit Three car makers, and concern over the outlook for EV demand. Early Friday, GM shares were 15% lower than six months ago, while the S&P 500 had gained 8%.
The labor situation might be improving. The UAW seems to have approved a contract that lasts until April 2024, but investors are still waiting for confirmation. Wages and benefits will be higher, but costs for all auto makers have been increasing after years of high inflation.