Tesla Model Y Leads in Brand Loyalty Among US Automakers

A recent report by S&P Global Mobility reveals that Tesla enjoys the highest brand loyalty among US automakers. However, some buyers are turning to competitors, albeit in small numbers. Among electric compact utility vehicles, the Tesla Model Y has the highest loyalty rate at 37.3 percent, followed by the Ford Mustang Mach-E at 18.5 percent.

While 70.5 percent of Model Y owners choose to purchase another electric vehicle (EV), the remaining percentage switches to gas-powered SUVs and trucks. This is partly due to the pricing disparities between the Model Y and Tesla’s luxury EVs, the Model S and Model X. The starting price of the Model Y Long Range is $50,490, while the Model S starts at $74,990 and the Model X at nearly $80,000.

To address this gap, Tesla is set to release the Cybertruck, which is expected to offer a more affordable option for truck buyers and potentially retain more customers. In response to Ford’s price reduction of the F-150 Lightning, Elon Musk hinted that the Cybertruck might undercut its competitor’s electric truck.

Although the loyalty rates for the Model S decline with the age of the vehicle, it still remains an attractive option for many buyers. According to the report, 3.4 percent of Model S buyers switch to the Lucid Air, while 1.8 percent choose the Rivian R1T. The Mercedes-Benz EQS and Rivian R1S capture 1.6 percent and 1.2 percent of the market, respectively.

On a larger scale, Tesla continues to dominate the market. Almost 60 percent of Model S owners and a remarkable 72.8 percent of Model 3 owners opt to purchase another Tesla vehicle. Additionally, a previous study by S&P revealed that 28.6 percent of Tesla buyers switch from legacy carmakers such as Honda and Toyota.

It is important to note that this latest study is based on 12-month rolling data through June 2023 and may not reflect the preferences of older buyers.

Sources: S&P Global Mobility Report