Tesla may be losing EV share but it is still winning over other brands.

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  In a recent study, Tesla was able to surpass all other automakers when it comes to overall brand loyalty.
  
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  This shows that, despite all the controversy surrounding the EV-maker, loyal fans are still there.
  
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  However, Tesla may lose its lead as other automakers switch to electric vehicles.
  

Tesla has managed to retain a loyal fanbase. However, some believe Elon Musk may not be able to maintain his lead for ever.

According to S&P Global Mobility's loyalty study, Tesla outperformed all other automakers last year in terms of overall brand loyalty (beating Ford) and most improved loyalty ("unseating Genesis") respectively. Tesla was also awarded segment model loyalty awards. These included luxury small utility vehicles for the Model Y and luxury small cars for the Model 3.

For another year, Tesla won awards for top "conquest", which is when a brand takes a customer from another brand, and for highest loyalty among electric vehicle owners.

S&P Global Mobility examined 11.7 million US vehicle registrations between 2022 and 2023. They weighed each customer who purchased a new vehicle of the exact same make, model or manufacturer as one they already owned.

Tesla's success in 2022 was largely due to inventory problems among traditional automakers, Tesla customers returning back to market quicker than the average buyer for other brands, and its many advantages being the EV market leader. S&P Global Mobility stated that the brand's appeal with ethnic consumers drove loyalty improvement. The company also began to qualify for vital EV tax credits in America, which again fueled interest.

These results showed that, despite Musk's controversial ways of doing things, volatility impacting electric-vehicle manufacturer, federal investigations and Twitter distractions, self driving tech problems and many other issues, both Musk and his fans remain committed to their cause.

However, Tesla's share of the EV market may be reduced. Experian reports that Tesla held 65.4% in the EV market by 2022. This is a decrease of 68.2% and 79.4% respectively in 2021, 2020, Experian reports.

Tesla lost some customers because of drastic price cuts. The value of new Teslas fell by as much 20% overnight.

According to a J.D., the cuts were made in an attempt to increase waning demand. Power EV Index. These cuts were effective in attracting attention from other buyers. Consideration of the brand was increased to 44% in January after 39% of EV shoppers indicated interest in December.

However, Tesla and Musk may be playing a part in alienating potential buyers. There are more legacy automakers than startups competing to bring new EV products on the market.

"Down-the-road, this hold that Tesla may not have as strong, but they have built that up because they have infrastructure, they are brand recognized," Vince Palomarez (product management principal at S&P Global Mobility), said. While Tesla will retain its hold on buyers, I don’t believe it will be as dominant going forward.

He said that based on the future production plans, he expects there to be some erosion of Tesla's share.

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By: astjohn@insider.com (Alexa St. John)
Title: Tesla may be losing EV market share — but it’s still winning over converts from other brands
Sourced From: www.businessinsider.com/tesla-market-share-car-buyers-brand-loyalty-advantages-automakers-2023-2
Published Date: Tue, 28 Feb 2023 10:00:00 +0000

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