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Tesla defies industry trends and sees increases in brand loyalty

(Photo: Ma. Claribelle Deveza)

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Despite the shortages of computer chips and other logistical issues that have compelled other automakers to reduce output dramatically, Tesla defied industry trends and showed a 4% rise in brand loyalty.

The percentage of customers who choose the same brand when they trade in or purchase their next car is a measure of brand loyalty. Some brands perform better than others, as you might expect, and a recent study in this area reveals some extremely intriguing developments that have occurred over the previous two years.

In a live webinar, S&P Global Mobility Loyalty Principal Tom Libby analyzed brand loyalty data trends during widespread inventory shortages from January 2020 to April 2022.

Automotive News attended the event called “Baker’s Dozen: 13 Takeaways From Today’s New Vehicle Loyalty Landscape.” The Baker’s Dozen examined brand loyalty data trends and inventory shortages across the board. The information was gathered between January 2020 and April 2022. It concluded that Tesla is still on top in the luxury brand loyalty market and doesn’t appear to be slowing down.

Since the start of inventory shortages in March 2021, brand loyalty for both mainstream and premium automakers has decreased. Tesla is the only one that has stood out from the crowd, and it was one of three premium brands that did not see a loss in customer loyalty over that period.

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Credit: Automotive News 

According to Libby, Tesla didn’t get there by poaching clients from rival companies. Compared to premium and mainstream rivals, the company’s conquest/defection ratio, which measures the number of customers switching to Tesla split by the number leaving the brand, was low.

“Tesla’s C/D ratio with the other luxury makes, except for Land Rover, was down, which I found surprising. I thought that perhaps they were suffering because of Tesla,” Libby said. “And overall mainstream is down also, which I found surprising.”

Tesla depends on internal loyalty to drive its growth rather than stealing customers away from competing businesses.

According to Automotive News, “The Model 3, the company’s dominant nameplate, is behind the trend. The vehicle’s loyalty rate jumped by over 7.5 percentage points to an average of 62.2%.”

From March 2021 to April 2022, nearly 62% of Model 3 consumers already had a Tesla vehicle. Compared to March 2021, when it had a 49.1% loyalty rating, March 2022 saw a 73.1% loyalty rate, a 24 percentage point rise.

In light of inventory limitations, Libby provided several theories as to why Tesla has been successful. He believes Elon Musk’s distinctive personality and marketing efforts are the reason for Tesla’s success.

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Tesla Model 3 gets perfect 5-star Euro NCAP safety rating

Tesla prides itself on producing some of the safest vehicles on the road today.

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Credit: Tesla Singapore/X

Tesla prides itself on producing some of the safest vehicles on the road today. Based on recent findings from the Euro NCAP, the 2025 Model 3 sedan continues this tradition, with the vehicle earning a 5-star overall safety rating from the agency.

Standout Safety Features

As could be seen on the Euro NCAP’s official website, the 2025 Model 3 achieved an overall score of 90% for Adult Occupants, 93% for Child Occupants, 89% for Vulnerable Road Users, and 87% for Safety Assist. This rating, as per the Euro NCAP, applies to the Model 3 Rear Wheel Drive, Long Range Rear Wheel Drive, Long Range All Wheel Drive, and Performance All Wheel Drive.

The Euro NCAP highlighted a number of the Model 3’s safety features, such as its Active Hood, which automatically lifts during collisions to mitigate injury risks to vulnerable road users, and Automatic Emergency Braking System, which now detects motorcycles through an upgraded algorithm. The Euro NCAP also mentioned the Model 3’s feature that prevents initial door opening if someone is approaching the vehicle’s blind spot.

Standout Safety Features

In a post on its official Tesla Europe & Middle East account, Tesla noted that the company is also introducing new features that make the Model 3 even safer than it is today. These include functions like head-on collision avoidance and crossing traffic AEB, as well as Child Left Alone Detection, among other safety features.

“We also introduced new features to improve Safety Assist functionality even further – like head-on collision avoidance & crossing traffic AEB – to detect & respond to potential hazards faster, helping avoid accidents in the first place. 

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“Lastly, we released Child Left Alone Detection – if an unattended child is detected, the vehicle will turn on HVAC & alert caregivers via phone app & the vehicle itself (flashing lights/audible alert). Because we’re using novel in-cabin radar sensing, your Tesla is able to distinguish between adult vs child – reduced annoyance to adults, yet critical safety feature for kids,” Tesla wrote in its post on X.

Below is the Euro NCAP’s safety report on the 2025 Tesla Model 3 sedan.

Euroncap 2025 Tesla Model 3 Datasheet by Simon Alvarez on Scribd

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USDOT Secretary visits Tesla Giga Texas, hints at national autonomous vehicle standards

The Transportation Secretary also toured the factory’s production lines and spoke with CEO Elon Musk.

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Credit: Elon Musk/X

United States Department of Transportation (USDOT) Secretary Sean Duffy recently visited Tesla’s Gigafactory Texas complex, where he toured the factory’s production lines and spoke with CEO Elon Musk. In a video posted following his Giga Texas visit, Duffy noted that he believes there should be a national standard for autonomous vehicles in the United States.

Duffy’s Giga Texas Visit

As could be seen in videos of his Giga Texas visit, the Transportation Secretary seemed to appreciate the work Tesla has been doing to put the United States in the forefront of innovation. “Tesla is one of the many companies helping our country reach new heights. USDOT will be right there all the way to make sure Americans stay safe,” Duffy wrote in a post on X. 

He also praised Tesla for its autonomous vehicle program, highlighting that “We need American companies to keep innovating so we can outcompete the rest of the world.”

National Standard

While speaking with Tesla CEO Elon Musk, the Transportation Secretary stated that other autonomous ride-hailing companies have been lobbying for a national standard for self-driving cars. Musk shared the sentiment, stating that “It’d be wonderful for the United States to have a national set of rules for autonomous driving as opposed to 50 independent sets of rules on a state-by-state rules basis.”

Duffy agreed with the CEO’s point, stating that, “You can’t have 50 different rules for 50 different states. You need one standard.” He also noted that the Transportation Department has asked autonomous vehicle companies to submit data. By doing so, the USDOT could develop a standard for the entire United States, allowing self-driving cars to operate in a manner that is natural and safe.

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Tesla posts Optimus’ most impressive video demonstration yet

The humanoid robot was able to complete all the tasks through a single neural network.

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Credit: Tesla Optimus/X

When Elon Musk spoke with CNBC’s David Faber in an interview at Giga Texas, he reiterated the idea that Optimus will be one of Tesla’s biggest products. Seemingly to highlight the CEO’s point, the official Tesla Optimus account on social media platform X shared what could very well be the most impressive demonstration of the humanoid robot’s capabilities to date.

Optimus’ Newest Demonstration

In its recent video demonstration, the Tesla Optimus team featured the humanoid robot performing a variety of tasks. These include household chores such as throwing the trash, using a broom and a vacuum cleaner, tearing a paper towel, stirring a pot of food, opening a cabinet, and closing a curtain, among others. The video also featured Optimus picking up a Model X fore link and placing it on a dolly.

What was most notable in the Tesla Optimus team’s demonstration was the fact that the humanoid robot was able to complete all the tasks through a single neural network. The robot’s actions were also learned directly from Optimus being fed data from first-person videos of humans performing similar tasks. This system should pave the way for Optimus to learn and refine new skills quickly and reliably.

Tesla VP for Optimus Shares Insight

In a follow-up post on X, Tesla Vice President of Optimus (Tesla Bot) Milan Kovac stated that one of the team’s goals is to have Optimus learn straight from internet videos of humans performing tasks, including footage captured in third person or by random cameras.

“We recently had a significant breakthrough along that journey, and can now transfer a big chunk of the learning directly from human videos to the bots (1st person views for now). This allows us to bootstrap new tasks much faster compared to teleoperated bot data alone (heavier operationally).

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“Many new skills are emerging through this process, are called for via natural language (voice/text), and are run by a single neural network on the bot (multi-tasking). Next: expand to 3rd person video transfer (aka random internet), and push reliability via self-play (RL) in the real-, and/or synthetic- (sim / world models) world,” Kovac wrote in his post on X.

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