Tesla Inc.‘s TSLA high customer retention rate stands as a significant advantage, deemed an “underappreciated point” by company investor relations head Martin Viecha, following a recent survey revealing a surge in electric vehicle interest in the United States.
What Happened: A Bloomberg Intelligence (BI) survey from earlier this month underscores a rapidly growing appetite for EVs, with 42% of prospective car buyers considering an electric vehicle for their next purchase, despite ongoing challenges with charging infrastructure and overall affordability.
Advantage, Musk: Tesla, as the world’s leading EV manufacturer, seems well-positioned to capitalize on this trend. Viecha highlighted this on social media, noting, “Super high retention rate of Tesla buyers is an underappreciated point. Especially given ~90% of Tesla’s vehicles sold in 2023 were sold to people who never owned a Tesla before.”
See Also: Best EV Penny Stocks
According to the survey, Tesla maintains an 87% brand retention rate, outperforming non-electric automakers such as Lexus and Toyota, with retention rates of 67% and 54%, respectively. Furthermore, 81% of prospective Tesla buyers are new customers switching from competing EV brands, compared to only 42% of Nissan’s prospective buyers.
Still A Cool Factor: In February, automotive insights provider S&P Global Mobility identified GM as the auto manufacturer with the highest customer loyalty in the U.S. However, Tesla clinched the overall loyalty award for its Model 3 and Y vehicles’ popularity among current owners. Additionally, Tesla maintained its top position for the third consecutive year in the ranking of the most American-made cars by Cars.com.
But Troubles Remain: Despite these successes, Tesla has faced challenges since the beginning of the year, with disappointing quarterly deliveries and rumors of scrapping its low-cost car plans, leading analysts to downgrade the stock.
EV Market On Rise: The BI survey predicts U.S. battery electric vehicle penetration will reach 25% by 2030, indicating significant growth in the EV market.
The survey identifies inadequate charging infrastructure and range anxiety as significant concerns for potential EV buyers. Additionally, almost 80% of potential users remain skeptical of self-driving technology.
Photo via Shutterstock
Engineered by Benzinga Neuro, Edited by Ramakrishnan M
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
