What Was Once Unimaginable Has Occurred to Tesla’s Brand | Carscoops

      Only 18 percent of consumers ranked Tesla as their top choice last year, a decrease from 22 percent in 2023.

      According to a UBS poll, Tesla's global brand allure has diminished. The favorable perception of Tesla among American buyers fell from 38% to 29%. In China, electric vehicle consumers are increasingly attracted to BYD and Xiaomi instead of Tesla.

      Not long ago, Tesla seemed to have an invincible brand. Its vehicles received acclaim for being faster and more advanced than competing electric cars, while CEO Elon Musk was celebrated as an innovative genius. However, the situation has shifted, and Tesla’s brand reputation has significantly weakened, as indicated by the latest UBS survey.

      Poll results show that the perception of owning a Tesla is notably lower among buyers in China, Europe, and the US compared to previous years. Competing automakers, both established and emerging—including BMW and Xiaomi—are quick to capitalize on Tesla’s declining status.

      Global statistics reveal that the percentage of buyers who considered Tesla their top brand dropped to 18 percent last year, down from 23 percent in 2022. Among US buyers, this figure declined from 38 percent to 29 percent, while in Europe it fell from 20 percent to 15 percent.

      In China, Tesla is facing significant challenges, primarily due to the rise of competitively priced domestic EVs loaded with technology, which are largely unavailable to Western consumers. Just 14 percent of Chinese buyers rated Tesla as their top brand last year, down from 18 percent in 2023, and significantly lower than the 30 percent figure in 2020, as reported by SCMP citing the same UBS study.

      “Competition in China is fierce, and Tesla is no longer perceived as the leader in technology,” UBS analysts stated. “In Europe, we speculate there may have been some damage to the brand due to Musk’s political actions. Overall, our outlook on Tesla stock remains cautious.”

      Emerging Competitors Are Intensifying Their Efforts

      Xiaomi has made its entry into the electric vehicle market with the well-received SU7, and its upcoming YU7 SUV is expected to attract attention, showcasing more style compared to the Tesla Model Y. However, BYD is inflicting significant challenge on Tesla's sales performance, not only in China.

      For the first time, BYD surpassed Tesla in European sales last month, according to data from Jato Dynamics. In April, BYD delivered 7,231 EVs, which represents a 169% increase compared to the previous year. Conversely, Tesla's sales decreased by 49%, with only 7,165 units sold in the same timeframe. Overall EV sales across Europe rose by 28%, reaching 184,300 units and elevating their market share from 13% to 17%.