While there have been reports that the electric vehicle (EV) industry has stalled, a new study shows that the future of the automotive industry in the United States is electric, and Tesla is leading the charge.
According to a study from Bloomberg Intelligence (BI), Tesla’s brand loyalty is unparalleled, boasting an impressive 87% brand retention rate, significantly outpacing traditional automotive giants like Lexus and Toyota. In fact, Tesla’s brand retention rate of 87% surpasses the average mark of other auto brands in the study by nearly a factor of two (87% vs 45%).
Not only that, but 81% of prospective Tesla buyers are new customers transitioning from competing brands, highlighting Tesla’s ability to both attract and retain customers.
The BI survey, conducted among 1,000 adults planning to purchase or lease a new car within the year, reveals a clear preference for electrification among American consumers. Forty-two percent of respondents expressed interest in purchasing an EV as their next vehicle, highlighting a significant uptick in consumer interest towards EVs.
However, the path to widespread EV adoption is not without its challenges. Issues such as charging infrastructure inadequacies, range anxiety, and long charging times persist and remain significant hurdles. Despite these challenges, the survey indicates that once you go electric, you are unlikely to go back to internal combustion engine (ICE) vehicles, with 93% likely to choose an electric powertrain for their next vehicle purchase.
This “fuel-type stickiness” suggests a promising future for EV adoption, as current owners appreciate the benefits of electric driving.
We’re continuing to witness a profound penetration of BEVs in the US auto market, which promises to reach 25% by the end of this decade. Tesla, GM and Stellantis’ slew of affordable EV models, set for debut by 2026, may tap more mass-market buyers. Despite this, the market still has a long way to go to mature, with charging network inadequacy, range anxiety and extended charging wait times topping the list of concerns for all car buyers. China, a country with a 23% BEV penetration, has an average charge point per BEV almost 5 times higher than the U.S., signaling a critical need for charging infrastructure development in the country to bolster the technology’s penetration in the US auto market.”
Steve Man, Global Lead Director for Auto & Industrial Market Research at Bloomberg Intelligence
