GSK shares fall after FDA panel votes against Blenrep combinations for myeloma
Investing.com -- Consumer interest in electric vehicles (EVs) and the Tesla (NASDAQ:TSLA) brand is waning across key global markets, according to new survey data.
The latest UBS Evidence Lab Global EV Survey, which included over 10,000 respondents, shows a broad decline in Tesla’s standing as a preferred EV brand in the U.S., China, and Europe.
Globally, the share of consumers who would consider buying a Tesla has fallen to 36%, down from 39% last year. As a top battery electric vehicle (BEV) choice, Tesla slipped to 18% from 22%.
“The top choice decline was fairly prominent across the 3 major regions for Tesla,” UBS analysts led by Joseph Spak.
In the U.S., Tesla’s top choice share dropped sharply to 29% from 38%, despite maintaining a 48% share of the domestic BEV market. UBS attributes the slide to brand “saturation, a limited vehicle lineup, and affordability concerns.”
In China, Tesla fell to third place behind BYD (SZ:002594) and Xiaomi Corp (HK:1810), with top-choice preference down to 14% from 18%. Chinese consumers increasingly favor domestic brands, and Tesla is no longer viewed as the technology leader.
Moreover, Tesla’s top-choice ranking in Europe declined to 15% from 20%, with Audi and BMW (ETR:BMWG) surpassing it in brand consideration.
Meanwhile, brokerage firm Stifel’s own survey shows that Tesla’s appeal is becoming more politically polarized in the U.S.
Net purchase consideration among Democrats dropped to -46% in May, from -30% in August 2024. Meanwhile, it improved among Republicans to -14% from -26%.
“The inflection point since August 2024 is likely due to numerous factors, but mainly Tesla CEO Elon Musk’s endorsement of President Trump and involvement in his Administration,” Stifel said.
“However, recent discussions of Elon Musk’s gradual scale back away from DOGE and political affiliations could lead to another inflection point in the data over the next few months,” it added.
Despite weaker sales volumes tied to shifting sentiment, Stifel’s team believes that progress on Full Self-Driving (FSD) and recent comments from Elon Musk about its rollout could be a more significant driver of Tesla shares in the coming quarters.
UBS’ data also raises questions about Tesla’s autonomous driving strategy. The bank found that only 12% of consumers globally are willing to pay more than $7,600 upfront for autonomous features, while just 18% would pay more than $100 per month. Tesla’s FSD product currently costs $8,000 upfront or $99 monthly.