GM Wants Cadillac to Take on Tesla

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This actually could be a very interesting matchup.

It seems that it's happened literally out of the blue, but Tesla is now considered a real threat to a massive automaker like General Motors. Just last week it was revealed that GM is currently at work on a new EV that will directly challenge Tesla's upcoming entry-level model, which is due to arrive in 2016. GM's goal is for this model to have a 200-mile range and cost around $30,000. But unlike the Volt, this car won't be badged as a Chevy. More than likely, it's going to be a Cadillac.

Steve Fecht for Cadillac

GM CEO Dan Akerson just stated that the luxury division has been chosen to take on Tesla. "If you want to compete head-to-head with Tesla, and we ultimately will, you want to do it with a Cadillac," Akerson clarified. But consider this: would a $30k Cadillac devalue the brand? The entry-level ATS starts at just over $33,000 and the upcoming ELR (read: heavily rebadged Volt) certainly won't go for anything less than $40k. But still, a Cadillac-Tesla matchup is something we're very anxious to see happen.

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