Tesla is completely dominating brand loyalty in the US, and that’s because electric cars are taking over, and Tesla is basically the electric car market in America right now.
With over 60% of the new electric car market, Tesla is extremely dominant in the US. When you think “electric vehicles”, you are more likely than not thinking about Tesla.
And with interest in electric vehicles rising fast, combined with the fact that electric car drivers are not going back to gas, it is creating an incredible opportunity for Tesla to capture market shares and create brand royalty.
A recent study already showed that Tesla has the highest customer retention rate in the US.
Now a separate study from S&P Global is showing that Tesla now dominates brand loyalty in the US:
On top of its ‘Overall Loyalty to Make’ recognition, Tesla scored repeat wins for ‘Highest Conquest Percentage’ and “Alternative Powertrain Loyalty to Make.’ The combination of an active return-to-market consumer base and a majority share of BEV sales were contributors to Tesla’s loyalty performance this year. However, the brand’s resonance with ethnic consumers was a key driver in its recognition of loyalty improvement and diversity retention.
The only two categories that Tesla didn’t come on top in the study are “Overall Loyalty to Manufacturer” and “Overall Loyalty to Dealer”:
|MANUFACTURER AND MAKE LOYALTY AWARDS||WINNER|
|Overall Loyalty to Manufacturer||General Motors*|
|Overall Loyalty to Make||Tesla|
|Ethnic Market Loyalty to Make||Tesla|
|Most Improved Make Loyalty||Tesla|
|Overall Loyalty to Dealer||Subaru|
|Highest Conquest Percentage||Tesla*|
|Alternative Powertrain Loyalty to Make||Tesla*|
That can be easily explained by the fact that Tesla only has a single brand unlike GM and it doesn’t use the dealer model like Subaru and most other automakers.
S&P Global also noted that Tesla’s rise to the top of loyalty in the US comes amid an overall decline in average loyalty in the auto market.
This is not a complicated situation. Electrification is coming faster than all those automakers anticipated and Tesla is offering compelling electric vehicles in higher volume than anyone else.
Customers are going to them and they are not going back to gas.
There are starting to be more non-Tesla options, but none of them are available in the kind of volume that Tesla is currently delivering.
It will change in the next few years, but this early advantage is giving a big edge to Tesla. An edge that could last a while.