GM Cadillac EV Price-Performance Falls Short Of Tesla, Says Fund Manager: 'Customers Aren't Stupid'

General Motors Corp.’s (NYSE:GM) Cadillac unit, on Wednesday, launched the electrified version of its Cadillac Escalade full-size SUV. Called 2025 Cadillac Escalade IQ, the EV promises a range of 450 miles and will come armed with the Super Cruise driver assistance technology.

However, Future Fund's Gary Black suggested that GM's EV strategy perplexed him.

 "Not sure what game $GM is playing with Cadillac EV pricing," Black said in a post on the social media platform X.

The announcement regarding the high-end EV comes after the Cadillac Celestiq EV, which is a handmade car that will likely begin deliveries in 2024.

The luxury EV, priced at $340,000, will go from 0 to 60 miles per hour in 3.8 seconds and have a range of 300 miles, Black noted.

“Seems absurdly priced vs $TSLA S Plaid at $108,000, 0-60 in 1.99 sec and a range of 396 mi,” he said.

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Comparing Escalade IQ with Tesla Model X Plaid, Black said GM's EV is priced at $130,000 vs. Tesla's $108,000. He added that the 0 to 60 miles acceleration and range of Escalade IQ are 5 seconds and 450 miles, respectively, compared to Model X Plaid's 2.5 seconds and 333 miles.

Tagging Tesla CEO Elon Musk and GM's Mary Barra, Black said, “Consumers aren't stupid…. But I guess you can say you led.”

In premarket trading on Thursday, GM shares rose 0.66% to $36.50, according to Benzinga Pro data.

Image source – GM

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Related Link: GM CEO Mary Barra Says Company’s EV Strategy Remains On Track As Automaker Takes Steps To Cut Costs, Improve Margins