Tesla is having fun with the best model loyalty amongst US automakers, Citi analysts concluded early this 12 months. Whereas the model continues to delight in a excessive loyalty price, its rivals are luring a small share of its patrons, wrote S&P World Mobility in its current report.
Amongst electrical compact utility automobiles, the Tesla Mannequin Y has a 37.3 % loyalty price, whereas the Ford Mustang Mach-E is second at 18.5 %. Whereas 70.5 % of Mannequin Y homeowners purchase one other EV, the remainder of them defect to gas-powered SUVs and vans, S&P reported. That’s partially as a result of massive gulf in pricing between the Mannequin Y, and Tesla’s luxurious EVs: Mannequin S and Mannequin X.
The Mannequin Y Lengthy Vary presently begins at $50,490 earlier than taxes, charges, and incentives after Tesla eliminated the lower-priced commonplace vary variant from its on-line configurator. The Mannequin S begins at $74,990, whereas the Mannequin X’s beginning worth is almost $80,000 earlier than taxes and charges.
The upcoming Cybertruck might doubtlessly plug this hole. After Ford slashed the costs of the F-150 Lightning in July 2023 to a beginning MSRP of slightly below $50,000, CEO Elon Musk tweeted that it was nonetheless “considerably costly,” hinting that the Cybertruck would possibly undercut Ford’s electrical truck.
Some Mannequin S patrons additionally defect to non-Tesla automobiles. The posh electrical sedan is now over a decade outdated, and loyalty charges naturally decline when a car ages, as per the report. 3.4 % of Mannequin S patrons change to the Lucid Air, adopted by the Rivian R1T at 1.8 %, Mercedes-Benz EQS at 1.6 % and Rivian R1S at 1.2 %.
Do not forget that these are small migration numbers. On a bigger scale, Tesla continues to rule to roost. Practically 60 % of Mannequin S homeowners buy one other Tesla, whereas a whopping 72.8 % of Mannequin 3 homeowners additionally return to the model.
A earlier S&P examine said that 28.6 % of Tesla patrons switched instantly from legacy carmakers like Honda and Toyota. That mentioned, the most recent examine relies on 12-month rolling information by way of June 2023, and may not be relevant to older patrons.