Tesla has the highest level of loyalty in an industry that continues to grow, Citi analysts said in a note Thursday. The company holds a brand loyalty rate of about 67%, compared with an average of about 46% for luxury brands.
On Thursday, Citi analysts published a note assessing U.S. auto companies. They explained that Tesla continues to sport the industry's “most impressive loyalty metrics, holding a ~67% brand loyalty rate (LTM as of Q1) vs. ~46% for luxury brands,” according to investing.com. Analysts noted that brand loyalty is on the rise, with the exception of 2021, which recorded a slight decline.
“Just as impressive is that Tesla's brand loyalty has actually trended somewhat higher in recent years, dipping briefly in 2021 likely on supply constraints,” they wrote.
The analysts noted that, according to the study, of the Tesla car lineup, Model 3 shows the highest loyalty and Model S the lowest. They are impressed with the resilience of the company’s brand loyalty.
“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 concluded.
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.