Big SUVs Are the Next Battery-Electric Vehicle Frontier

First Rivian R1S, then Kia EV9 and now Cadillac Escalade IQ. The three-row battery-electric SUV battle is about to get very interesting as automakers lean toward more all-electric versions of the SUVs their customers already love, and startups gain a foothold in the market.

If there's three things the average customer knows about three-row SUVs, it's this: they're big and getting bigger, they aren't fuel efficient, and they're expensive.

The move to a battery-electric powertrain, digitized cars and increased use of high-strength steel helps take care of largeness concerns. When automakers use an all-electric propulsion system, they are able to take away components that are traditionally used for internal combustion engine powertrains such as a transmission (and transmission tunnel) and emissions piping. This allows the car to have a flatter interior and an unencumbered center in the first and second rows.

The newest three-row electric vehicles (EVs) take advantage of this space by offering seating for adults across all three rows, and the ability to fold all seats flat for use hauling, or to turn the vehicle into an overlander, if even for a night, including the full in-car camping experience.

The Tesla Model X has an available third row, but that space doesn't fit adults.

Digitizing components enables a vehicle to have less wiring and less physical knobs and buttons. This can result in a weight savings (though batteries are heavy, so any loss is traditionally an overall gain) as well as allow for more customization of parts, without ever having to have a mechanic touch the vehicle.

Additionally, developing a car to act more like a smartphone enables over-the-air updates, which can help improve battery range, hone regenerative braking strategies and add drive modes, without ever having to stop at a dealership.

Three-row SUVs will be able to take advantage of this just the same way compact SUVs and small cars are able. Though their bodies may age, they can get new features and change up their tuning as technology evolves.

The use of high-strength steel means that less physical material can be used to create an even safer vehicle than a model's predecessors. This allows for more cabin space without increasing the size of the model, and upped levels of rigidity, which deliver a smoother ride.

While the size of the vehicle automatically means that it's less fuel efficient than smaller SUVs, three-row SUVs powered by electrons instead of fossil fuels will have less carbon emissions out the tailpipe than gas users.

What the electric miles per gallon (MPGe) equation does not take into account is the actual efficiency of the vehicle. A new Hummer EV is responsible for more carbon emissions per mile than a Chevrolet Malibu, according to the American Council for an Energy-Efficient Economy. And, it requires nearly three times the amount of electricity to move as a Tesla Model 3.

The cost of a Hummer EV is also about three times that of a Tesla Model 3, putting it out of the price range of most buyers. New three-row SUVs are walking that line between affordable and super luxury models.

Today, Cadillac unveiled its new battery-electric Escalade. The model isn't just an electric Escalade. It is a clean sheet design that takes into account some of the hallmarks of the internal combustion engine version.

"We had to work around the battery pack, of course, but that was it. And so, there were things done on this that we've never been able to do before. Craig Sass, Cadillac design manager, told Newsweek. His design brief was to, "make it almost as different as you can while still being Escalade".

Pricing for the Cadillac IQ is expected to start around $130,000. That manufacturer's suggested retail price (MSRP) isn't exactly competitive, but it may not need to be as Cadillac isn't ready to begin mass producing the EVs yet.

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Kia is expected to more modestly price its EV9 three-row SUV when it comes to market later this year. It's will begin south of $70,000.

The Rivian R1S falls between the two. It starts at $78,000.

"The Escalade IQ needs to carry through the ethos of the gasoline Escalade, though speak to an EV-intender instead. Its pricing will ensure a limited audience even compared with the gasoline Escalade, and it carries a premium over the standard (and smaller) Tesla Model X. With a starting price of about $130,000, the Escalade IQ continues to demonstrate the gap between internal combustion engine and electric vehicle offerings," Stephanie Brinley, associate director of research and analysis at S&P Global, told Newsweek..

"The pricing also reflects the Escalade IQ's intended exclusive position. Cadillac is not aiming for the masses with the today's Escalade IQ; other EVs in its range will take on that role, and it is reasonable to expect that further trim levels will be added which may come in with a bit lower starting MSRP."

The success of Cadillac with Escalade IQ may be even more important than Cadillac's first go at an EV, Lyriq. "The launch version is here to make a statement, and to continue the ethos of the Escalade for power, technology, style and design. Customers ultimately will tell us if the IQ succeeds in terms of style, craftsmanship and design; the technology is competitive and, in some areas, advanced from other EVs," Brinley said.

Upon the debut, Cadillac faces immediate questions about the company's ability to build the vehicle. General Motors has struggled to turn out Hummer EV and EV SUV models from the same plant it's planning to churn Escalade IQs out of. There's been less than 100 Hummer EV pickups made from January 1 to July 1, 2023.

Experts forecast Rivian and Kia to sell tens of thousands of their SUVs over the next few years.

"Escalade IQ is designed, like the Celestiq, to make a Cadillac EV an aspirational product and a statement. Cadillac needs a win with customers on this vehicle, though a win may not mean perfection and at this price point, volume will be limited. A win will mean that the vehicle is respected and seen as aspirational, not necessarily that it is perfect.

"It bears repeating that a transformation from an internal combustion engine-led automotive market to an EV-led market will take time and that product iteration will be part of that process. The first IQ will come with some flaws in execution, as nearly any automotive program does; what will matter for the long-term Cadillac position is that this first shot is respected and credible, and how the execution of EVs and connected technologies evolves over time."

Though they're not perfect, electric three-row SUVs are being developed and brought to market, engineered for a next-generation customer who is ready to live a tailpipe emissions-free lifestyle in the here and now.