Why Is GM's Electric Cadillac So Expensive?

The 2015 Cadillac ELR, a luxurious plug-in hybrid based on the Chevy Volt's underpinnings, is set to arrive at U.S. dealers early next year. Photo credit: General Motors Co.

General Motors  plans to launch the 2015 Cadillac ELR coupe early next year at a price of almost $76,000. For that price you'd expect the ELR to be a luxurious sports car, but it's not: It's actually a plug-in hybrid, one that GM is already positioning as a rival to Tesla Motors'  electric Model S sedan.

That's an ambitious price and an ambitious target. But there's an interesting twist: The new Cadillac shares its drivetrain with GM's Chevy Volt, a car that can be had for less than half of the ELR's starting price.

What is GM thinking here? In this video, Motley Fool contributor John Rosevear -- who recently had a close look at a pre-production ELR -- shares his impressions of the new Cadillac, and offers some thoughts on what GM's real strategy with the ELR might be.

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The article Why Is GM's Electric Cadillac So Expensive? originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of General Motors. The Motley Fool recommends General Motors and Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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