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

Tesla Inc. 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.

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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. TM, Honda Motor Company HMC, BMW AG BMWYY and Mercedes-Benz Group AG 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 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.

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