Declining brand loyalty for Tesla Inc (NASDAQ:TSLA) has been a well-publicized topic in recent years with the company's CEO Elon Musk getting more involved in politics. Brand loyalty could be coming back for Tesla, according to a new survey, something not surprising for Chamath Palihapitiya.
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Tesla Tops US Loyalty Rates in February
A social media post caught the attention of Musk and Palihapitiya, and Tesla investors may want to take note as well.
The post shares the U.S. loyalty rates from S&P Global Mobility for the month of February by auto brand, with the prior year's rate included.
Here are the top 10 ratings for the month of February and their prior year rating:
- Tesla: 61.1% (54.7%)
- Subaru: 60.5% (56.7%)
- Toyota: 59.9% (56.6%)
- Ferrari: 59.7% (51.0%)
- Honda: 58.2% (55.6%)
- Lucid: 57.9% (14.2%)
- Ford: 57.8% (59%)
- Chevrolet: 56.7% (59.2%)
- Nissan: 55.7% (49.9%)
- Mercedes-Benz: 54.7% (55.8%)
Tesla's loyalty rating for the U.S went up by a significant margin from the prior year, and the company topped the list, as one of only two to be rated above 60%.
Others like Ford Motor Co (NYSE:F) and General Motors Co (NYSE:GM)-owned Chevrolet brand saw their loyalty ratings fall.
Palihapitiya shared the post on social media. While he was likely impressed by the 61.1% mark, he wants to know why it's not even higher.
"It's hard to understand what the other 39% are thinking. Once you drive a Tesla, it's like driving an all-seeing sensor with a super computer behind the scenes doing all the decision making, driving and navigation. Also, you never have to go to a gas station," Palihapitiya tweeted.
The investor's post likely highlights Tesla FSD, the self-driving software that is now a subscription service offered by Tesla. The support from Palihapitiya is another top approval rating from a well-known individual not being paid for their support of the Musk-owned brand.
Tesla's Brand Ranking
Investor Ross Gerber recently argued Musk has hurt Tesla so much that the company may have negative brand value and be better off naming vehicles something else to get them to sell.
Previous rankings from Brand Finance have shown Tesla to have one of the biggest declines in its ranking for reputation, recommendation, trust and coolness for the automaker. The rankings showed Tesla's brand falling in Europe, Canada and the U.S.
While it is only one ranking and one country, the improving U.S. loyalty in the S&P rankings could signal a turnaround in how people view Tesla, which is good news for the company and investors.
Photo courtesy: CarlaVanWagoner / Shutterstock.com
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