During the interview, Libby followed up on a recent study from S&P Global Mobility that revealed Tesla’s brand loyalty as a luxury automaker surpasses all of its rivals. He outlined how Tesla has developed more brand loyalty than any other luxury automaker in the market, much to the surprise of market analysts.
Libby said there’s a ratio they use at S&P Global Mobility to represent customer inflow into and outflow from a car brand to gauge customer retention and brand loyalty. For Tesla, this ratio is more than one against all other luxury brands in the market, which is unprecedented for any company.
“They’re hurting everybody,” he said. “They’re hurting some of the mainstream brands,” while the weaker luxury brands are suffering the most at the company’s hands.
“I think he [Elon Musk] has created such an image for the brand, and the product, and himself that people frankly […] may not even know about the tech, they just say ‘Hey, this is a Tesla.'”
According to market research, Tesla is taking customers away from mainstream automakers like GM, Ford, Honda, and more.
“For the Model 3 and the Model Y, the two high-volume models, about half of the households coming to those models have a mainstream product in the garage,” Libby added. “The numbers are extraordinary in terms of Tesla pulling from everywhere.”
S&P’s latest data showed that the Model 3 had the highest owner loyalty in the entire automotive market year-to-date, at around 60%.
Check out the full interview from Autoline Network below:
Nehal has a passion for everything tech — from electric vehicles to the latest smartphones, and everything in between, including coffee (click here to buy me a coffee!). Click here to get 1,000 Tesla Supercharger miles free with your next Tesla purchase.