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GM’s Cadillac set to eliminate 40% of dealerships in $274M restructuring project

The distinctive black crystal grille is one of the LYRIQ’s most unique and expressive design elements. It is also a dynamic feature, as it is part of a dramatic lighting choreography that greets the owner upon approach.

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General Motors’ Cadillac brand is set to eliminate around 40% of its U.S. dealerships and roll out a new electric SUV, hoping to ease into a more-committed adoption of electric vehicles.

GM is one of the largest automotive brands globally and has been involved in the development of electric vehicles for several years, thanks to the Bolt, an EV under the automaker’s Chevrolet brand. However, GM is not one of the leading players or contributors currently in the EV sector, as it plans to scrap gas engines by 2035. This date, set well into the future, has not sat well with many EV enthusiasts, who have petitioned for a more committed and serious goal for GM, who plans to roll out a $35 billion investment in electric cars by 2025.

Cadillac, one of GM’s luxury brands, is planning to make a more committed effort toward electrification starting at the dealership level. While Cadillac does have the LYRIQ, which is set to roll out sometime in 2023, it knows the switch to EVs is inevitable and is modifying its infrastructure in a manner that would ease the difficult transition from gas-powered vehicles to electric ones. A new report from Reuters states that the Head of Cadillac’s Global Brand, Rory Harvey, says 560 dealers will be active in the U.S. network by the end of the year, a sharp decrease from the 920 locations the brand operated in the United States in 2018.

Cadillac spent a total of $274 million since the beginning of 2020 to buy out dealership locations that were not prepared to invest between $200,000 and $500,000 per store to lineup the training and equipment needed to embrace a complete transition to EVs. Cadillac plans to be 100% electric by 2030.

Credit: Cadillac

While the number of locations will dwindle to just 560, Cadillac will open new showrooms in well-established areas and cities like New York City, Beverly Hills, Atlanta, and San Francisco. Interestingly, many electric automakers have slotted out these cities for their initial showrooms. As introductory products are usually more expensive due to their position as a capital raising outlet, it is a common strategy for automakers to set up sales floors in high-income areas. The early vehicles from many of these automakers will be more expensive as they will funnel capital to future projects, just like the Tesla Roadster did for later models.

However, Cadillac’s real focus does not lie in the United States but in China. Garvey has said that it has not had to restructure retail operations there. Instead, the brand is experiencing a 20% increase in sales through the first nine months of 2021, resulting in nearly 181,000 sales in China through September.

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It is clear that Cadillac will not scrap its showroom plans altogether. Instead, sales and service will still happen at dedicated dealership locations. It will not sell its vehicles directly to consumers like Tesla, Rivian, and Lucid.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Supercharger access has proven to be a challenge for one company

Interestingly, it seems to be the Volkswagen brand specifically that is having issues with compatibility with Tesla Superchargers. Other brands under the VW umbrella, like Audi and Porsche, have already gained access to the charging network.

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Credit: MarcoRP | X

Tesla Supercharger access has proven to be quite the challenge for one company, as it continues to delay the date that it will enable its owners to charge at the most expansive network in the world.

Tesla Superchargers have been opening up to other brands for well over a year, and many car companies that are manufacturing electric vehicles now have access to the vast network that has over 70,000 locations worldwide.

Tesla to launch Supercharger access for VW owners later this year

However, one brand has experienced some issues with what it is calling “technical challenges,” specifically failing to enable cross-compatibility between its vehicles and Tesla Superchargers.

Volkswagen has had to delay its ability to enable customers to charge at Superchargers because there have been some difficulties getting things to run smoothly. A report from PCMag cites a quote from a Volkswagen spokesperson who said there are still plans to deliver this year, but there have been some delays:

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“Volkswagen looks forward to making it possible for ID. Buzz and ID.4 vehicle owners to gain access to the Tesla NACS Partner Superchargers. The timeline has been delayed by technical challenges, and we ask for customers’ patience. We still expect to deliver access this year.”

Interestingly, it seems to be the Volkswagen brand specifically that is having issues with compatibility with Tesla Superchargers. Other brands under the VW umbrella, like Audi and Porsche, have already gained access to the charging network.

Volkswagen EV owners will need to use an official VW adapter to access the Tesla Supercharger Network once the issues are resolved. It still plans to launch access to its owners later this year, but its spokesperson did not announce any planned timeline.

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Tesla Giga Berlin makes big move amid strong sales and demand

“We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards.”

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Credit: Tesla Manufacturing

Tesla is making a big move at its factory in Germany, known as Giga Berlin, as managers at the plant have indicated the company plans to increase its production rate for the remainder of the year.

Giga Berlin is responsible for manufacturing Model Y vehicles for several markets worldwide, including those outside of Europe. It was opened in March 2022, and it recently built its 500,000th Model Y in March and its 100,000th new Model Y just three weeks ago.

Due to some encouraging sales figures in the markets it provides vehicles for, Tesla said it is planning to increase production at the factory for the remainder of the year.

Andrè Thierig, plant manager at Giga Berlin, said to German news outlet DPA on Sunday that market data has encouraged a move to be made regarding the production at the factory:

“We currently have very good sales figures and have therefore revised our production plans for the third and fourth quarters upwards.”

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It is interesting to see this kind of narrative from Thierig, especially as data has shown Tesla has struggled in various markets, including Germany, this year.

Sales drops have been reported, but other markets are holding strong, especially those in Northern Europe, such as Norway, where the Model Y saw a nearly 39 percent increase in sales in August compared to the same month the previous year.

Tesla Model Y leads sales rush in Norway in August 2025

Gigafactory Berlin supplies vehicles for other markets, such as Canada, Australia, and New Zealand, which are strategically important to avoid tariffs. It also builds cars for the Middle East.

Thierig reiterated this point during the interview with DPA:

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“We supply well over 30 markets and definitely see a positive trend there.”

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Elon Musk

Tesla analyst says Musk stock buy should send this signal to investors

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

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(Credit: Tesla)

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.

One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

Dorsheimer said in the note:

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”

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Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.

He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.

Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.

In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:

“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”

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Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.

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