Just because the gas gauge moves a half a tank when you use 10 gallons of gas doesn't mean that the gauge is reading correct if the zero level is wrong.
It sounds like the gauge is reading 1/4 tank when it should read empty.
Try filling it up when you're at a 1/2. If you only get 10 or so gallons in, then the gauge is probably fine. But if you get about 15 gallons in, then the zero point on the gauge is 1/4 tank higher than it should be.
Cosmos Black/Black 1995 540iA M-Sport
BMW Individual Exclusive Edition, 1 of 65 total, 9/25/95 Build