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Tesla brand loyalty trended higher in recent years, 'maintains an impressive loyalty lead' - Citi

Published 2023-05-18, 12:02 p/m
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Citi analysts said in a note Thursday that electric vehicle giant Tesla (NASDAQ:TSLA) maintains an impressive loyalty lead.

The analysts, in their note assessing US auto firms, explained that the Elon Musk-led company 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."

"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," the analysts wrote.

They added that across Tesla's vehicle lineup, the Model 3 shows the highest loyalty and Model S the lowest.

"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.

Tesla shares are up more than 46% in 2023, currently trading at around $175 per share. However, the stock is still significantly below its 2021 high of over $400 per share.

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