We will agree with the consensus that Cadillac, thus far, is quite underrated. With a portfolio of well-done sedans, a solid crossover, and the Escalade cash cow, it’s a solid luxury unit, but one that hasn’t quite reached its potential. But could it be the next Tesla?
Financial analyst Adam Jones of Morgan Stanley told Markets Insider in a report published on Monday that Cadillac is seriously undervalued and it could rival Tesla. He said GM has the “potential for fundamental repositioning of Cadillac as a ‘captive Tesla.'”
It’s hard to place a value on Cadillac itself, but the brand’s global sales have risen 15.5 percent year-to-date, thanks to China. The U.S. is a very different picture. Its increasing global sales may value the brand at around $13 billion, however, something Jones pointed to as a “blind spot” for investors.
His argument: if GM can tap Cadillac’s potential and show the brand’s worth, investors may respond even more. That will take an aggressive marketing strategy, per Jones, though. The next Tesla? We don’t think so, but we’ll happily agree that Cadillac needs to step into the spotlight.