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Tesla dominates brand loyalty in the US as electric cars take over

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 of 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 creates 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”:

Overall Loyalty to ManufacturerGeneral Motors*
Overall Loyalty to MakeTesla
Ethnic Market Loyalty to MakeTesla
Most Improved Make LoyaltyTesla
Overall Loyalty to DealerSubaru
Highest Conquest PercentageTesla*
Alternative Powertrain Loyalty to MakeTesla*

This 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.

Electrek’s Take

Top comment by Mark Longoria

Liked by 22 people

And it will tend to stay like that unless the CCS1 charging networks can get their act together and other makers do a better job with their software.

IoniQ 5 & EV6 customers are still waiting for the battery pre-conditioning update. VW still has buggy software. Etc.

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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.

More non-Tesla options are becoming available, but none of them are available in the kind of volume that Tesla is currently delivering.

This 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.

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