The esteemed electric vehicle manufacturer, Tesla (NASDAQ: TSLA), continues to lead the market with its robust customer loyalty, according to a note by Citi analysts. In an examination of US automobile manufacturers, these analysts found that the Elon Musk-led company maintains superior loyalty metrics in the industry.
Tesla's Brand Loyalty Metrics: A Closer Look
The analysts revealed that Tesla has an approximate 67% brand loyalty rate (LTM as of Q1), outperforming the 46% held by other luxury brands. In recent years, Tesla's customer allegiance has shown a slight upward trend. A short-lived dip in 2021, attributable to supply constraints, is the only deviation from this otherwise rising trend.
Model 3 and Model S: Variance in Customer Loyalty
Diving deeper into Tesla's product portfolio, the analysts highlighted varying levels of loyalty across different models. Tesla's Model 3 demonstrated the highest customer loyalty, while the Model S fell short in comparison.
Awaiting the Impact of New Entrants on Tesla's Market Dominance
The entry of new electric vehicles into the market might change the current dynamics. "It will be interesting to see how this evolves as new EVs enter the market, but the resilience to date we think is impressive," the analysts noted.
Tesla's Stock Performance: A 2023 Perspective
Tesla's share value has increased by more than 46% in 2023, with each share presently trading around $175. Despite this growth, the stock's value is considerably lower than its 2021 peak, which exceeded $400 per share.