Tesla Buyers Are Even More Loyal Than Ford F-150 Fanatics

[AzScorpion]

GM once again claimed the #1 spot for customer loyalty for the 8th year in a row.Tesla now took over Fords #1 spot at the top of the “Loyalty to Make” category. This is the first time Ford has lost this since 2008 which was mostly due to the F150 dominance. Looks like maybe these high prices are starting to effect them?

https://www.yahoo.com/autos/tesla-buyers-even-more-loyal-163000258.html

General Motors once again claimed the “Overall Loyalty to Manufacturer” spot for the eighth year in a row, which is probably just as indicative of GM’s staying power as it is of the fact that GM comprises many brands, and it’s sort of difficult to avoid them in this country.

More surprising is that Tesla displaced Ford at the top of the “Loyalty to Make” category. This is the first time Ford hasn’t claimed that designation since 2008, a title it mostly owes to the continued dominance of the F-150. Mercedes and Subaru also took home hardware as well

According to S&P Global, Tesla’s success can be owed to “ethnic consumers” who “comprised 40 percent of personal vehicle registration in 2022.” It’s a little weird that S&P is plucking the same language Shop Rite uses to condense every kind of cuisine that isn’t Italian into one aisle to describe nearly half of all car buyers, but I digress.

To S&P, “loyalty” occurs when a household “acquires a second vehicle of the same make, model or manufacturer,” either to replace or supplement a previous purchase. Taken another way, Tesla has been around long enough and matured as a brand to the point where it can claim a sizable number of repeat buyers.

Look — I’m not saying everyone can afford a Model 3right now, but at $42,990 it’s currently $5,000 cheaper than the average new car. Throw in the $7,500 federal tax credit and it’s almost $12,500 below the average. However low Tesla could theoretically go with a Model 2, when you consider inflation and that the typical new car costs $11,000 more than it did five years ago, $25,000 seems like wishful thinking. But this is the car that’s supposedly going to change everything, so the hype cannot die.

Sponsored

 

[BettaRanga]

They charge way too much for some extra metal, glass, and badge name.

At the same trim level…
Traverse to Tahoe or Suburban
Explorer to Expedition
Ranger to F150
Any mid size truck to full size at same manufacturer

ADD $20-30k

 

[dtech]

Love him or hate him Musk has succeeded despite many saying Tesla would fail. CEO Jim Farley (aka mini Musk) of course both loves and envies him.

 

[AzScorpion]

Love him or hate him Musk has succeeded despite many saying Tesla would fail. CEO Jim Farley (aka mini Musk) of course both loves and envies him.

Elon has a great vision. Here's another article showing where he cut prices back in January and will bring in less revenue. But his gross margins will still be above 20% which is still above the competitors.

https://www.fool.com/investing/2023...hoo-host&utm_medium=feed&utm_campaign=article

Furthermore, while other automakers' revenue growth rises and falls from quarter to quarter, Tesla's growth has constantly remained ahead of everyone else. With management guiding for production of around 1.8 million cars this year (it produced 1.37 million in 2022), it will continue to grow sales rapidly if it can sell its product.

But recent events have called that into question.

In January, Tesla cut prices. While the reasons behind these cuts are numerous, the company will bring in less revenue because of them. Due to fixed costs, its best-in-class profit margins will take a hit. But chief financial officer Zach Kirkhorn said during the fourth-quarter conference call that its automotive gross margin will remain above 20%, which is still greater than the competition's.

Yes, Ford is the green line.

 

[dtech]

Elon has a great vision. Here's another article showing where he cut prices back in January and will bring in less revenue. But his gross margins will still be above 20% which is still above the competitors.

https://www.fool.com/investing/2023...hoo-host&utm_medium=feed&utm_campaign=article



Yes, Ford is the green line.

And area where I'd be surprised that Tesla succeeds is the Cyber truck - way behind schedule and aesthetically not really appealing. I think Musk has also said that a $25k EV is still possible. I don't think Tesla even needs the self driving capabilities to sell cars and there may be more downside to selling them than it's worth. I can't exactly recall what the people Tesla employs in Buffalo NY do but it's something to do with mapping roadways and putting info into the SW, the plant was originally intended to produce solar panels (Solar City) but had been a bust, Tesla keeps it open IIRC because of all the incentives they get, the plant has been a huge drain for NY state taxpayers.

 

[CB750F]

Elon has a great vision. Here's another article showing where he cut prices back in January and will bring in less revenue. But his gross margins will still be above 20% which is still above the competitors.

https://www.fool.com/investing/2023...hoo-host&utm_medium=feed&utm_campaign=article



Yes, Ford is the green line.

Yes, Elon is nuts but he does have vision.
Do you know how I can invest in SpaceX?

 

[CB750F]

Also, not for everyone, but he talks about a 25k car, well, better get on it!

https://licarco.com/jac-e10x

 

[AzScorpion]

And area where I'd be surprised that Tesla succeeds is the Cyber truck - way behind schedule and aesthetically not really appealing. I think Musk has also said that a $25k EV is still possible. I don't think Tesla even needs the self driving capabilities to sell cars and there may be more downside to selling them than it's worth. I can't exactly recall what the people Tesla employs in Buffalo NY do but it's something to do with mapping roadways and putting info into the SW, the plant was originally intended to produce solar panels (Solar City) but had been a bust, Tesla keeps it open IIRC because of all the incentives they get, the plant has been a huge drain for NY state taxpayers.

A $25K EV (or ICE) would be great. We were just talking in another thread how there's no good lower priced vehicles anymore and that's really hurting people right now. Build something of good quality (if it's possible anymore) in the mid to upper $20k range and they should sell like crazy! At a $25K price point I would consider one IF I were n the market for an EV. Having solar on my house also helps because I could charge it here for free and being a second vehicle I'd still have my gas guzzling truck. ?

As far as the tax credits go you can't hate on him to much for that. He's just using the same system as all the others and Ford is doing the same with their new battery plant in MI. Worse though they'll in bed with China with this and many are not happy about it.

https://www.marketwatch.com/story/f...-to-american-taxpayers-1b7b1310?siteid=yhoof2

Bottom line: although the Michigan plant would be technically owned by Ford, all the manufacturing, processes, and other components would be run by CATL. In other words, it would be a Chinese CATL plant in all aspects, except that Ford would legally own it so CATL can harvest the federal tax benefits.

It’s a bad idea to lavish American tax money on the world’s largest battery company. (CATL commands about 34% of the global EV battery market, with Chinese government subsidies equal to 20% of net income. Its market share is more than double that of its next-closest competitor, Korea’s LG Energy Solution 373220, -0.59%. ) Adding insult to injury, U.S. taxpayer funds would also make America’s battery supply-chain even more dependent on China.

 

[dtech]

A $25K EV (or ICE) would be great. We were just talking in another thread how there's no good lower priced vehicles anymore and that's really hurting people right now. Build something of good quality (if it's possible anymore) in the mid to upper $20k range and they should sell like crazy! At a $25K price point I would consider one IF I were n the market for an EV. Having solar on my house also helps because I could charge it here for free and being a second vehicle I'd still have my gas guzzling truck. ?

As far as the tax credits go you can't hate on him to much for that. He's just using the same system as all the others and Ford is doing the same with their new battery plant in MI. Worse though they'll in bed with China with this and many are not happy about it.

https://www.marketwatch.com/story/f...-to-american-taxpayers-1b7b1310?siteid=yhoof2

that is a very well written article - and even mentions that workers at the Michigan Plant would be Chinese with work visas . I'm sure MI laid out multi year incentives, Ford's whole strategy could backfire if public sentiment turns against them, with international friction growing the deal is by no means risk free. Farley is clearly all in on EVs though.

 

[dtech]

Maybe Ford will modify some of the " Built for America" ad campaign and add something about partnering with our friends at CATL. Imagine inserting a proportional number Chinese workers into these ads, I'm sure the UAW will be thrilled.

But I'm skeptical that the CATL plant would be mostly staffed by Chinese workers - that may have happened in some other countries but I don't see it happening in the US .

Sponsored