Proactive Investors - Tesla (NASDAQ:TSLA) remains the top electric vehicle (EV) brand in 2023 according to UBS Evidence Lab’s EV annual consumer survey.
UBS said Tesla kept its lead in the survey with 42% of battery EV purchase intenders considering a Tesla.
In China, Tesla gave up the top spot to BYD, and these two brands lead all others by a wide margin, the survey showed.
German premium brands gained territory by about 200 to 300 basis points year-over-year, whereas mass-market brands showed flat to negative momentum.
For the first time since the survey began in 2016, the percentage of consumers likely to consider buying a fully electric car (BEV) declined, down 3% year-over-year at 46% largely on affordability concerns in Europe.
UBS’s analysts said the moderately negative year-over-year trend in consumer sentiment underscored the need for more affordable BEV products.
“In a market that is increasingly oversupplied and therefore more competitive, only cost and scale leaders will be able to have a profitable product,” they wrote, noting that two companies stood out in this regard: Tesla and BYD.
“Conquest of the true mass segment (below $30,000) is the next big source of EV growth, and we consider Tesla and BYD best positioned to win this segment with profitable products.”
Analysts expect most competitors to struggle to reach BEV to internal combustion engine (ICE (NYSE:ICE)) margin parity as their cost structures and executive delays mean that Tesla and BYD are likely to gap away further.
“Luxury and high-end premium (Porsche (ETR:P911_p), Mercedes) likely show higher resilience as there is better execution, stronger tech substance and a lower competitive threat from disruptors, plus a sticky fan base for their high-performance ICE cars,” the analysts wrote.
“Legacy mass OEMs (Ford, VW, Volvo, Renault (EPA:RENA)) will likely be relative laggards.”