I've deduced some technical information from
https://pt.wikipedia.org/wiki/Elevador_da_Glória so now things make more sense to me.
The track layout is totally different from most other funiculars - usually these are single track at the upper and lower terminals, with a dual track section 'halfway' to allow the two cars to pass each other.
Track layout:
This funicular has four 'running rails' all the way from top to bottom. Imagining I'm standing at the upper terminus looking down the hill, car 1 always uses the left pair of rails, car 2 always the right pair. At this point the two tracks are spaced apart, though they could in principle be interlaced - I think one of the Lisbon funiculars has interlaced tracks at the upper end, the others including this one are separated. Perhaps it depends on the available street width. Anyway, beyond the halfway-down point the inner pair of rails cross over to form an interlaced section down to the lower terminus.
Braking slot:
The braking slot is off-centre - to the left (looking down the hill again) for car 1 and to the right for car 2. So, for the interlaced section(s) there is still room for the slot between the sets of rails. This photo
https://pt.wikipedia.org/wiki/Elevador_da_Glória#/media/Ficheiro:Tram_in_Lisboa_pic-003.JPG shows this clearly.
Overhead wiring:
Each car has its own pair of overhead wires, so there are four wires all the way from top to bottom. As for the braking slot, each wire pair is offset to one side - to the left for car 1 and right for car 2. The power pick-ups, which seem to be a combination of pantograph and trolley 'pole', are also offset in the same way, so the power pickups always stay under their respective sets of wires. Again, this photo
https://pt.wikipedia.org/wiki/Elevador_da_Glória#/media/Ficheiro:Tram_in_Lisboa_pic-003.JPG shows this clearly.
So, it is perfectly feasible for the two cars to be connected in series across the overhead supply. Assuming both cars have some form of resistance control as on older trams, and two traction motors per car all in permanent series as already mentioned, as long as both 'brakesmen' select the correct direction, one can open their power controller to pass current through all four traction motors and 'accelerate' both trams together. The traction motor characteristics will manage the current flow such that all motors produce the right tractive effort for the prevailing load, through being linked by the cable.
When traction motor current isn't required, such as when the cars are stationary at their terminals, it could easily be arranged that the 'half supply voltage' that each car will 'see' can power a compressor (for the air brake) and battery charging (for lighting etc.). Otherwise I don't know how those would be achieved.
Those are my deductions and thoughts, happy to be updated.