For quite some time, Tesla has enjoyed the highest (or near-highest) loyalty rates in the automotive industry, with its customers proving to be quite satisfied with their vehicles and the company, in general. In fact, Tesla even overtook Ford for the top spot in the 2023 S&P Global Mobility Automotive Loyalty Awards after The Blue Oval enjoyed a 12-year run atop that list. However, things have certainly changed in recent months, and a decision made by Tesla CEO Elon Musk last summer has had a profound effect on the company’s customer loyalty.
According to Reuters, new data from S&P Global Mobility shows that Tesla’s customer loyalty hit a high mark in June 2024 as 73 percent of existing U.S.-based owners opted to purchase another Tesla vehicle when the time came to do so. The very next month, Musk threw his public support behind now-President Donald Trump, which has since caused that same figure to dip to just 49.9 percent in March, below the industry average.
Tesla’s loyalty did improve by May, however, to 57.4 percent, which moved it back above the industry average – on par with Toyota, but also behind Ford and Chevrolet. Regardless, this dramatic fall that coincides with Musk’s decision to take a side in the last presidential election highlights just how risky such moves can be. Such a fall from a dominant position in customer loyalty is “unprecedented,” according to S&P analyst Tom Libby, who said “I’ve never seen this rapid of a decline in such a short period of time.”
At the same time, Ford has improved its consumer loyalty in a variety of recent studies. Previously, S&P loyalty data revealed that Ford owners are the least likely to be “one and done” when it comes to purchasing a vehicle from the brand, in fact. Additionally, Ford topped the truck rankings in the J.D. Power 2024 U.S. Automotive Brand Loyalty Study, while the Ford Expedition ranked first among all full-size SUVs in S&P’s 2024 Global Mobility Automotive Loyalty Awards.
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