Cadillac Escalade IQL Costs $40K More Than V8 Escalade ESV. Is It $40K Better?

Motorists often cite sticker shock as a reason for not buying an EV, and the new 2026 Cadillac Escalade IQL isn’t going to break the stereotype. The long-wheelbase SUV starts at $132,695 including destination, meaning it’s approximately 40% more expensive than the V8-powered Escalade ESV.

To put that figure into context, the gasoline-burning Escalade starts at $90,095 with rear-wheel-drive while the long-wheelbase ESV carries a base price of $93,095. Four-wheel drive costs $3,000 regardless of wheelbase length, and both figures include a $1,995 destination charge. If you’re in the market for an EV, the short-wheelbase Escalade IQ will set you back by $129,990 including a destination charge pegged at $2,290.

Of course, Cadillac didn’t simply replace the 6.2-liter V8 with an electric motor and call it a good job well done. Beyond the name and a handful of styling cues, the gasoline- and battery-powered Escalade variants are fundamentally different vehicles. The V8 model rides on the T1XX architecture that also underpins Chevrolet’s Tahoe, Suburban, and Silverado and their GMC-branded counterparts. The EV is built on the BT1 architecture also found under the GMC Hummer EV, the Chevrolet Silverado EV, and the GMC Sierra EV. One is an old-school, body-on-frame truck; the other is a super-advanced electric truck that warrants the much-hyped “software-defined” label that carmakers love to throw around.

Technology and batteries make cars more expensive, and the Escalade IQL Is full of both. But is it 40% more car than the Escalade ESV?

On paper, not really. The IQL stretches approximately 228 inches long, 85 inches wide, and 76 inches tall. The ESV measures 227 inches long, 81 inches wide, and 76 inches tall, so it’s pretty much the same size as its electric counterpart. Interior space is almost identical as well. In the IQL, you’ve got 45.2 inches of legroom in the first row, 41.4 in the second row, and 36.7 in the third row. In the ESV, these figures check in at 44.5, 41.7, and 36.7 inches, respectively. The IQL’s first- and second-row passengers benefit from about an inch of additional headroom, however.

Trunk space takes a hit, likely due to the IQL’s slightly more tapered silhouette. It offers 125.2 cubic feet of trunk space with the second and third rows folded flat and 24.2 cubes behind the third row. There’s a 12-cubic-foot frunk, which the ESV doesn’t have, but the ESV is more spacious by a not-insignificant margin. You’ve got 142.8 cubic feet with the second and third rows out of the way and 41.5 cubes with the third-row seats up.

The gap is wider when you compare technical specifications. The IQL gets a pair of electric motors (one per axle) that draw juice from a massive, 205-kWh lithium-ion battery pack to develop 750 horsepower and 785 lb-ft of torque when the Velocity Max mode is engaged. In normal mode, the drivetrain makes 680 hp and 615 lb-ft of torque. Cadillac quotes up to 460 miles of driving range. Zero-to-60-mph takes 4.7 seconds using Velocity Max, and the 19-foot-long electric Escalade can tow up to 7,500 pounds.

Over on the ICE side of the range, the ESV comes with a 6.2-liter V8 rated at 420 hp and 460 lb-ft of torque. It can tow up to 8,000 pounds with rear-wheel drive, though its driving range surprisingly falls short of its electric counterpart’s. The EPA doesn’t release ESV-specific figures, but the short-wheelbase Escalade offers 408 miles of range with rear-wheel drive and 384 miles when all four wheels are driven.

The IQL’s list of standard features includes Magnetic Ride Control 4.0 technology, an air suspension system, four-wheel steering, power-folding third-row seats, a 55-inch display (just FYI: the original Mini measured about 56 inches wide), a 21-speaker sound system, and Super Cruise. The ESV’s list of standard features is shorter: Magnetic Ride Control and the air suspension are optional, four-wheel steering isn’t available, and its base sound system includes only 19 speakers. However, the Mini-wide display, the power-folding third-row, and Super Cruise come standard.

In terms of substance, the Escalade IQL and the Escalade ESV aren’t that far apart. They’re probably not $40,000 apart (or $36,000, if you factor in four-wheel drive), and Cadillac can’t count on the $7,500 federal tax credit to make the IQL more accessible because the SUV’s MSRP lies far above the $80,000 threshold set by the EPA. I hear you: no one expects to score a bargain when they start looking for a new Escalade as their next car, and that may be the IQL’s saving grace. It’s massive, it’s luxurious, and it’s sure to turn heads. But, the ESV ticks these boxes as well.

Then again, Cadillac has never been shy about exploring the upper echelons of the Escalade’s pricing spectrum. And, as long as the demand is there, why would it? Case in point: the most expensive variant of the ESV is the V-Series, which gets a 6.2-liter V8 supercharged to 682 hp, all-wheel drive, huge six-piston Brembo front brake calipers, and a base price pegged at $168,720 including destination.

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