EV Demand Grows For Well-Priced Luxury Options In ‘Sweet Spot’

Electric cars like the Cadillac Lyriq are on the move—up. Despite talk about an EV slowdown, certain battery-powered options are still in demand.

Cadillac’s global vice president, John Roth, has noticed the ideal positioning of the brand’s main production EV. The Lyriq starts under $60,000 with over 300 miles (314-mile range for the rear-wheel variant, 307 for all-wheel drive) on a single charge. “We’re in the sweet spot for purchase,” he said in a meeting in San Francisco last month. “At the heart of the luxury market.”

A May EV sales report shows that high-priced and low-range EVs are still unattractive, but vehicles like the Lyriq are driving electric purchases. “They sell,” Roth succinctly noted. And it’s not just buyers in a certain region, but throughout the U.S. shoppers are looking for value alongside performance for electric options. Early adopters want the tech, others want the functionality and others the interior and exterior design.

As parent company General Motors reported in its first quarter sales report, Lyriq deliveries were up nearly 500% from the same quarter in 2023: 5,800 units compared to 968. The Lyriq accounted for 17% of all Cadillac sales this quarter.

This is a similar pattern with other moderately priced, but still luxury-style EVs: Sales were up for the Audi Q4 e-tron ($55,200 to start), while Mercedes-Benz’ EQE (one of the brand’s under-$80,000 electric options) jumped 163% in sales from the same quarter last year. Volvo reported a 13.2% increase of total EV sales. Its all-electric C40 Recharge starts under $55,000. Ford’s Mustang Mach-E ($41,890 to start) also had a strong first quarter with sales up 77% from a year ago. EV leader Tesla saw a 9% sales drop.

Cadillac has announced several EVs coming down the pipeline, including an electrified version of its nameplate SUV, the Escalade. But in recent weeks, the American brand has been called out for walking back its EV goals. The company clarified that its plans for an all-electric portfolio by the end of the decade is still a go, albeit alongside traditional gas-powered vehicles.

“While Cadillac will offer an all-EV portfolio by 2030, we will let customer behaviors determine the rate we go exclusively EV. Our fresh ICE and EV portfolio and flexible manufacturing put us in a good position to transition at the rate of the market,” a spokesperson wrote in an email statement. “Our journey to EVs will not be a straight line. We understand the market will shift over the next six years and we’ll adjust as needed.”

Cadillac data shows that 60% of its target customers plan to buy an EV as their next car purchase. “When those customers are ready we’ll have the right vehicle for them,” the statement continued.