General Motors (GM) Unveils New 2025 Cadillac Escalade IQ
Building on the success of the Cadillac Escalade, General Motors GM recently unveiled the 2025 Cadillac Escalade IQ, an all-electric SUV. With an estimated range of 450 miles, Cadillac has more power than GM’s current supercharged V-8 SUV. The vehicle is likely to make its debut in showrooms late next summer with a starting price of $130,000. The price is higher than that of its traditional counterparts, which have been selling for an average price of $115,500 this year.
The Escalade IQ represents Cadillac's first major step into the traditional vehicle lineup as an EV, with plans to eventually replace existing gasoline and diesel vehicles, distinguishing it from Cadillac's Lyriq and Celestiq EVs, which introduced fresh concepts to the brand. By the end of the year, Cadillac plans to reveal two more EVs. With these three releases, GM wants to reassure its investors that it can produce profitable EVs and increase annual revenues from such vehicles to $90 billion by 2030.
Cadillac plans to make its entire lineup electric by 2030. Whether the automaker can transfer Escalade’s profit margins, estimated to be more than 30%, to the EV models is a topic of interest for investors.
Escalade IQ sales are likely to ramp up toward the end of the decade. The new Escalade IQ has a smoother exterior design, larger wheels and a longer distance between the front and rear tires, which makes it look smaller than the current SUVs, but, in fact, it is larger and features more room than the existing Escalade.
The 24-module battery with more than 200 kilowatt-hours of available energy will power the vehicle. Per the company, using an 800-volt DC fast charger, the battery can charge up to 100 miles of range in 10 minutes. This is the quickest form of charging currently available.
The Escalade IQ will be produced at a Detroit factory alongside the GMC Hummer EV, Chevrolet Silverado EV and Cruise Origin Shuttle EV and the traditional Escalade will continue to be manufactured at GM’s Arlington Assembly in Texas.
Zacks Rank & Key Picks
GM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some other top-ranked players in the auto space include Oshkosh Corporation OSK, Toyota Motor Corporation TM and PACCAR Inc. PCAR, each carrying the same rank as GM.
The Zacks Consensus Estimate for OSK’s 2023 sales and earnings implies year-over-year growth of 17.1% and 111%, respectively. The EPS estimate for 2023 has moved north by 84 cents in the past seven days. The 2024 EPS estimate has moved up by 73 cents in the past seven days.
The Zacks Consensus Estimate for TM’s 2023 sales and earnings implies year-over-year growth of 10.9% and 61.7%, respectively. The EPS estimate for 2023 has increased by $1.16 in the past 30 days. The 2024 EPS estimate has moved up by $1.98 in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2023 sales and earnings implies year-over-year growth of 22.3% and 40.1%, respectively. The EPS estimate for 2023 has moved up by 71 cents in the past 30 days. The 2024 EPS estimate has moved north by 3 cents in the past seven days.
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Oshkosh Corporation (OSK) : Free Stock Analysis Report
