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Tesla's April Price Reduction Triggers Surge in Online Traffic, Citi Reveals

Unveiling the impacts of Tesla's recent pricing strategies on its online presence and market reach.

Tesla logo
Tesla logo

Tracking Tesla's Online Performance

Citi has recently updated its "mindshare" tracker, a comprehensive tool designed to monitor online engagement related to electric vehicles (EVs). This innovative tracking system helps gauge interest levels on EV-specific websites and brand or company-specific platforms. The latter serves as a potential forecast for future EV market share and the potential influence of brands.

Tesla's Traffic Boost Following Price Cuts

The latest figures from the "mindshare" tracker reveal that Tesla experienced a surge in online traffic following its price cuts in April. The traffic increased to 51% in April compared to 47% in March. Although preliminary data for May suggests that the company's share slightly dropped to 48% from April's peak, it remained above both March levels and Q1 (46%), indicating a positive overall trend.

Net Inflow Analysis of Automaker Pairings

Citi's study didn't stop at traffic figures; it also explored net inflow and outflow traffic for various automaker pairings during April and May. This research aimed to identify patterns of conquest among automakers. The results showed that Tesla (NASDAQ: TSLA) had substantial net inflows from all automakers, with this trend becoming particularly noticeable post the April price reduction. The highest net inflows for Tesla came from Hyundai/Kia (+3.2%), Volvo (OTC: VLVLY) (+2.1%), and General Motors (NYSE: GM) (+1.8%; split evenly between Chevrolet and other GM brands).

Tesla Tops Visit Duration and Bounce Rates

Aside from tracking overall traffic, Citi's mindshare also analyzes visit duration, pages per visit, and bounce rates (visitors who leave a website after viewing just one page). The data suggests that the top performers in these categories continue to be Tesla, Ford (NYSE: F), BMW (OTC: BMWYY), and Porsche (OTC: POAHY). The less-performing brands in this analysis were Fisker (NYSE: FSR) and Volvo.

Tesla Shares Experience an Uptick

In light of the positive online traffic analysis, Tesla shares are also showing signs of growth. They rose 1.58% in premarket trading on Friday, indicating the company's strengthening position in the market.