Connect with us

News

Tesla’s resilient brand loyalty proves good products still drive sales (Op-Ed)

Credit: Tesla

Published

on

A quick look at the electric vehicle community’s sentiments about Elon Musk on X and platforms like Reddit would suggest that the CEO’s increasing political nature has now become Tesla’s largest liability. Yet as per S&P Mobility, Tesla’s brand loyalty is still incredibly strong. This suggests that even in today’s social media-driven landscape, good products still drive sales and loyalty. 

Tesla’s resilient brand loyalty

In its post, S&P Mobility noted that among individual brands, “Tesla continues its run as the leader in brand loyalty with a rate of 67.8% for the first half of 2024.” Vince Palomarez, associate director of loyalty product management at S&P Global Mobility, also noted that Tesla’s customer loyalty has remained constant. 

“Tesla has historically been a brand with strong loyal ties among their consumer base, despite a limited product portfolio. Changes in BEV prioritization among other OEMs, along with Tesla’s directive to cut pricing when needed, has kept households from defecting,” Palomarez noted.

S&P Mobility’s findings are extremely interesting as social media trends and media reports have practically been unanimous about the idea that Elon Musk has become poison to Tesla’s brand. As per Palomarez, however, the data does not support this narrative–at least for now. 

Advertisement

“We can only report on what we see in the data. In this instance, there is some decline in Tesla’s loyalty for the first half of 2024 vs. 2023; however, it is below one percentage point,” he said, noting that Tesla is still clearly beating other brands. “The brand still remains the industry leader in brand loyalty by a healthy margin. For comparison’s sake, the industry brand loyalty average stands at 52.5% for H1 2024 and no other brand has a loyalty rate above 60%,” the S&P Global Mobility associate director noted. 

Good products drive sales and loyalty

Perhaps one of the reasons why Tesla still sees strong brand loyalty among consumers is the fact that the company produces good products, from its electric vehicles to its battery storage systems. Even if Tesla’s vehicles have been beaten by other competitors when it comes to range, efficiency, and 0-60 mph times, the company’s vehicles offer the best value for their price. 

A good example of this is the re-engineered Tesla Model 3 Performance, which is an absolute steal at $55,000 for the performance, tech, safety, comfort, and features that it offers. The same is true for the Tesla Model Y, which has effectively outsold its rivals in the all-electric crossover SUV segment despite having the same exterior design since its March 2019 unveiling event. 

Consumers gravitate towards good products, leadership be damned. A look at the strong sales in the United States of the Volkswagen Beetle Type 1, a vehicle whose creation was driven by Adolf Hitler’s desire for a people’s car, proves this. The Volkswagen Beetle Type 1 became extremely popular in the United States in the 1960s, less than two decades after World War 2. All in all, almost 5 million Beetle Type 1 units were sold in the United States out of a total of 21.5 million cars worldwide. Part of the reason behind the Beetle Type 1’s success in the U.S. is due to the fact that it is just a great, bang-for-the-buck car.

Advertisement

The list goes on. Ford’s founder, Henry Ford, held deeply antisemitic views. He even brought a local newspaper to publish his own anti-Semitic writings. Ford has thrived despite its founder’s questionable ethics, and the company still produces the best-selling car in the United States today–the F-Series pickup trucks. The 47-year reign of the F-Series as America’s best-selling vehicle could be attributed to the fact that they are just great trucks.

Most amusing is the Reimann family, which owns a controlling stake in JAB Holdings. In 2019, it was revealed that the Reimann family had close ties to the Nazi party. Despite this, one cannot deny the fact that JAB Holdings’ brands, which include Krispy Kreme, Jimmy Choo, and Pret-A-Manger, are still loved by consumers because of their quality and consumer appeal. 

Elon Musk’s tweets

There is no doubt that since acquiring Twitter, Elon Musk has become far more willing to share his views on a number of issues, from US and international politics to gender ideology. There is also no doubt that the negative slant in media against Musk and his companies is at an all-time high. The Guardian, just last week, published a guide on how to “rein in” Elon Musk by boycotting Tesla, having foreign governments threaten to arrest Musk, suing the CEO under Section Five of the FTC Act, and terminating contracts with SpaceX. 

Musk has always attracted negative media attention, but not at this level. 

Advertisement

Considering the nature of Musk’s posts, it is no surprise that some consumers would indeed not purchase Teslas due to the CEO’s social media posts. But ultimately, sales and brand loyalty are a game of numbers. There is a vocal portion of the car-buying community who are extremely open about not purchasing Teslas due to their dislike or hatred of Musk. However, the lines between the EV sector and the greater automotive market are growing thinner. Thus, more regular car buyers may simply be looking at Teslas because they need a car. For such consumers, the politics of Tesla’s CEO may not be a consideration at all. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

News

Tesla Roadster unveiling gets pushed again, but new event details emerge

Published

on

Credit: Dan Burkland

Tesla has reportedly pushed the unveiling of the Roadster once again, but there are also evidently new details about the event that the company plans to show off.

The Information reported this morning that Tesla will now unveil, for the second time, the next-generation Roadster in August, a further delay from the multiple timeline that the company had previously stated.

The report has not been confirmed or denied by Tesla at any capacity.

It also states the unveiling event will take place in Texas, the same place that Tesla executives revealed in May would be the place of manufacture for the company’s highly-anticipated supercar, which boasts a top speed of over 250 MPH and 650 miles of range, according to its website.

Tesla is also expected to showcase the SpaceX package, which will be used for faster acceleration and potentially hovering capabilities, at the unveiling event, the report states. Musk has always planned for this to happen, but now it seems it is more realistic than ever

The Roadster has had its unveiling date and manufacturing date pushed back on many occasions. It was set to start production in 2020, but the COVID-19 pandemic crippled supply chain operations, forcing Tesla to push its timeline back considerably.

However, COVID has been over for some time, and Tesla has still not managed to successfully schedule and execute an unveiling event, which is something fans and enthusiasts, as well as those who have put down a $50,000 deposit, have been waiting for.

The vehicle was close to completion last year, but Musk truly wanted Lars Moravy and Franz von Holzhausen to push the limits of the Roadster. In July of last year, Moravy said:

“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind-blowing; We showed Elon some cool demos last week of the tech we’ve been working on, and he got a little excited.”

It is important to note two things: Tesla has not confirmed these details, and the company has regularly pushed these dates back. Until Tesla sends out formal invitations with a concrete date, taking any unveiling event reports with a grain of salt is a good idea.

Continue Reading

News

Tesla Model 3 has a tasty Supercharging incentive, but it’s ending soon

Published

on

Credit: Tesla

Tesla is offering a tasty Supercharging incentive on certain Model 3 trims, but the company has officially put a concrete end date on it, so those interested should act fast.

Tesla is offering Free Supercharging for One Year on the Model 3 Premium and Performance trims, the top two offerings of the all-electric sedan. There are three trims of the Model 3 that will have the Free Supercharging offer attached:

  • Premium Rear-Wheel-Drive – $42,490
  • Premium All-Wheel-Drive – $47,490
  • Performance – $54,990

Tesla has now announced that this offer will expire on June 15, giving potential buyers about ten days to take advantage of the incentive.

This could be an additional incentive for car buyers to transition to electric vehicles. Many states are showing gas prices well over $4 per gallon, with the national average currently sitting at $4.22, according to AAA.

Tesla Model 3 wins Edmunds’ Best EV of 2026 award

A free year of Supercharging miles would allow people to charge and travel for free, other than routine maintenance, which is already incredibly cheap compared to a gas car.

At Tesla Superchargers, peak rates, meaning prices between 8 a.m. and 10 p.m., average between $0.45 and $0.60. One year of driving at an average of 12,000 miles would cost between $1,000 and $1,500 at $0.50 per kWh. It’s a pretty good deal.

Supercharging prices have also increased recently:

Tesla has used Free Supercharging to move units in the past, and it’s a great strategy for those who plan to use the car for longer commutes, cross-country drives, or do not have reliable access to home charging.

It should be noted that Tesla recommends that Supercharging be used at a minimum to preserve the life of the battery, as fast-charging is more stressful on the cells.

However, some people might not have an option, so the Free Supercharging incentive could truly be a great reason for many people to charge their cars.

The Supercharging incentive is short-term, and it is pretty rare that Tesla utilizes it, so once this offer is gone, we probably will not see it on the Model 3 for some time.

Continue Reading

News

Ferrari CEO’s self-driving stance echoes Elon Musk’s — sort of

Published

on

Credit: Tesla | Ferrari

Ferrari CEO Benedetto Vigna revealed that the Italian automaker’s future will not involve self-driving, a point that echoes that of Tesla CEO Elon Musk’s — sort of.

You might be thinking, “Are you insane? Musk has been so incredibly hellbent on delivering self-driving vehicles to the public, so much so that he has even hinted that Tesla won’t need the ever-popular and widely-requested Model Y L in the U.S.

However, when it comes to electric supercars with high-performance specs and lofty price tags, Vigna’s stance is exactly what Musk wants for Tesla’s own hypercar project, the Tesla Roadster.

In a new interview with Australian media outlet Drive, Vigna made it clear that Ferrari’s ambitions for the future do not involve autonomy, simply because the company’s cars are not designed for anything but manual, spirited driving.

He said:

“We will not make fully autonomous cars — loud and clear. We want the people to have fun, not the [computer] chips. We want to have a steering wheel and a man or a woman behind the steering wheel. Otherwise, why do you buy a Ferrari?”

This seems to be a reasonable assertion. Ferraris are not made for daily commutes, cross-country road trips, or bumper-to-bumper traffic. They’re made for fast, spirited driving, and many of their buyers will only put a few thousand miles on them throughout their lifetime. True, exciting, fun driving is meant to be done manually.

That is not to say Full Self-Driving or other semi-autonomous suites are not “fun,” but they are meant to take the stress out of driving. They are made for the daily commutes, the rush hour traffic, and the parking lots and garages. It’s made to take the stress out of driving.

Tesla Full Self-Driving attempts 150-mile stress test: the good and the bad

Musk had stated in an interview in early 2026 that the Roadster would also be geared toward fun, manually-controlled driving. On the Moonshots podcast with Peter Diamandis, Musk said about the Roadster:

“This is not a…safety is not the main goal. If you buy a Ferrari, safety is not the number one goal. I say, if safety is your number one goal, do not buy the Roadster…We’ll aspire not to kill anyone in this car. It’ll be the best of the last of the human-driven cars. The best of the last.”

There are cars out there that simply are meant to be driven by humans, and Ferraris and Roadsters are a few of them. Ferrari has no true advantage in developing self-driving; their cars sell at low volumes with high price tags, and their performance specs and engineering are all geared toward spirited driving.

Continue Reading