Tesla has surpassed Mercedes-Benz (brand value down 3% to USD58.8 billion) and Toyota (brand value down 18% to USD52.5 billion) as the year’s top brands, surpassing their pre-pandemic values by more than five times. It’s an impressive accomplishment for Tesla to be ranked first. The fact that it is the only automobile brand among the top thirteen to have seen a significant increase in brand value of over 20% makes it even more impressive.
Tesla outperformed most analysts’ predictions and reported record profits in 2022, more than doubling those of 2021. Strong operational growth and increased production of cars, especially Tesla’s best-selling Model 3, are directly related to Tesla’s brand value growth.
In order to meet the growing demand for its electric vehicles, it has also invested an additional USD3.6 billion in its Nevada campus, constructing a truck factory and expanding battery production (EVs). Price reductions of up to 20% have been announced for some models by Tesla. This initially decreased the used car market value and might indicate a loss of price premium. It could also increase Tesla’s market share and bring in more buyers of new cars.
The brand could experience further growth if Tesla can meet its ambitious goal of producing 1.8 million vehicles by 2023. This increased market share and dominance complements that goal.
Source: Automotive Industry 2023 | Brand finance
