GM Closes EV Gap on Tesla With Affordable Electric Models
General Motors (GM) is pushing deeper into the EV market, narrowing the gap with Tesla as US consumers turn to bigger, more affordable options.
From marketing to manufacturing, the company is shifting its EV efforts up a gear, supported by fresh leadership and new models.
A Hummer EV and a clear message
Cassandra Garber took up her post as GM’s new Chief Sustainability Officer in spring 2025, announcing the news with a LinkedIn post in which she stood on the footplate of her new company vehicle – a Hummer SUV.
But, unlike its predecessors, this Hummer isn't a traditional petrol-consuming SUV.
Instead, it’s fully electric and part of the expanding EV lineup that GM is using to gain ground on Tesla in the US market.
Speaking to ESG & Climate News, Cassandra said: “We’re now the #2 EV company in the US, thanks to the dozen EV models we offer across the Chevrolet, Cadillac, GMC Hummer and Buick brands.”
Data from Cox Automotive, a research company focusing on the motor industry, shows EV sales at GM have increased by 183% from the first quarter of 2024 to the same period in 2025. The company delivered 4,728 electric vehicles in Q1 2025, up from 1,668 in Q1 2024.
Its Chevrolet brand is also seeing strong growth, with 19,186 EVs sold – a 114% rise from 8,957.
From the company's current fleet, two electric models stand out for Cassandra.
One is the Cadillac Escalade IQ, a large luxury SUV with 460 miles of range.
She said: “The Escalade IQ is just plain gorgeous. It’s this big, electric SUV with 460 miles of range, perfect for families with luxurious tastes.
"We’re learning from its design, capabilities and what people love about it – and we’ll continue to learn and bring new ideas and exciting experiences to our customers.”
The other is the more budget-friendly Chevrolet Equinox EV.
“The Equinox is affordable and impresses people with its design, range and capabilities,” noted Cassandra.
“It’s bringing more people into EVs, whether for cost, ease of maintenance, reducing trips to the gas station, environmental considerations or an interest in tech and innovation.”
Why GM is closing the EV gap
For years, Tesla has been the EV brand in the US, commanding market share and public attention. But Ford, Stellantis and especially GM are catching up.
Affordability plays a role. Tesla’s lowest-priced model, the Model 3 sedan, starts at US$42,490. GM’s Equinox EV undercuts it by US$7,495 and offers a larger build – a detail that appeals to many US households.
There’s also Tesla’s image problem. Since Tesla CEO Elon Musk served as a senior advisor to US President Donald Trump, the company’s fortunes have taken a hit.
Tesla’s share price dropped 41% between 2 January and 8 April 2025, and the company’s global deliveries fell by 13% in the first quarter of 2025. In Europe, sales declined by 49%.
This combination of pricing, model range and image has weakened Tesla’s grip on the US market.
The focus for its board now is whether the brand can recover or if rivals like GM will continue to gain.
Battery innovation behind GM’s EV scale-up
Battery performance underpins all electric vehicle progress. For GM, the core of this development lies in the work of its battery division, led by Kurt Kelty, Vice President for Battery, Propulsion and Sustainability.
“General Motors is delivering full-size electric trucks with up to 492 miles of range,” says Kurt.
“The progress in lithium-ion battery technology has been remarkable – but the real transformation is just beginning.”
Kurt explains that GM is not only making better batteries but also localising its production, developing a North American supply chain and reducing overall costs. These changes are meant to make GM’s EVs more affordable and globally competitive.
The company’s battery production comes from Ultium Cells, a joint venture with LG Energy Solution. This venture is now the largest original equipment manufacturer (OEM) battery cell producer in North America.
GM also spends US$7bn a year on research and development in the US.
“By scaling battery innovation, localising production and supply chain, and delivering more affordable EVs, GM is positioning itself and the US to compete – and win – on the global stage,” says Kurt.
As Tesla navigates public relations issues and shrinking market share, GM is capitalising on cost, model range and battery development.
The result is a growing position in the EV sector – with leadership and branding to match.
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