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
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