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Tesla Touts Brand Loyalty, Poaches 30% New Customers From Toyota And Honda: Study

Stock Markets Nov 30, 2022 16:40
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© Reuters Tesla Touts Brand Loyalty, Poaches 30% New Customers From Toyota And Honda: Study
 
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Benzinga - Tesla Inc. (NASDAQ: NASDAQ:TSLA) is pulling customers away from other companies, especially in the U.S. where it continues to be the dominant player in the electric vehicle (EV) market.

According to the S&P’s Global Mobility report, Tesla’s EV-only strategy is giving the company a retention advantage. Model Y currently has a brand loyalty of 60.5%. As new EVs arrive, loyalty is likely to be tested, the report continued.

See also: Tesla Deserves Higher Valuation For 'Optionality Value,' Says Analyst — Highlights These Revenue Drivers

About 74% of Tesla buyers are coming from outside the brand, which the report calls as "conquest rate." The Austin, Texas-based company is acquiring customers mostly from Toyota Corp. (NYSE: TM), Honda Motor Company (NYSE: HMC), BMW AG (OTC: BMWYY) and Mercedes-Benz Group AG (OTC: MBGAF).

About 28.6% of Tesla’s conquest was from Toyota-Honda combined.

Source: S&P Mobility Report

Leading But Not Invincible

  • About 525,000 new EVs were registered through September 2022, with Tesla’s share at 65%.
  • Ford Motor Company (NYSE: NYSE:F), which is the second best-selling brand, had a far less share of 7%.
  • No single model, except Model 3 and Model Y, saw registrations above 30,000 units in the first three quarters of the year.
  • Tesla’s market share may be challenged as more affordable options with better technology and production build arrive. This is evident from the erosion in Tesla’s market share from 79% in 2020 to 65% this year.
  • Much of Tesla’s share loss is to more affordable EVs priced at $50,000 or below.
In premarket trading on Wednesday, Tesla shares were rising 0.87% to $182.40, according to Benzinga Pro data.

Read Next: Best Electric Vehicle Stocks

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Tesla Touts Brand Loyalty, Poaches 30% New Customers From Toyota And Honda: Study
 

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