Tesla just recently surpassed Mercedes-Benz and Toyota to become the most valuable automotive brand globally. The US EV maker moved up two spots on the list of automotive brands and is now valued at a whopping $66.2 billion.
Tesla has been through some tough times over the last few years, though 2023 has been arguably positive thus far. The brand opened the year with major price cuts that are still underway, which is causing much grief for rival brands. While the US automaker’s stock still isn’t spiking as some investors may have anticipated, Tesla’s value is rising while competing brands are seeing a drop.
According to a recent report from Brand Finance, a consulting agency that tracks brand value in various segments, Tesla’s value soared by some 44% to rise to the top of the chart. Brand Finance looks at 5,000 brands and publishes over 100 reports as it compiles its brand ranking lists each year. It features both the most valuable, as well as the strongest, automotive industry brands in its annual Brand Finance Automotive Industry 2023 ranking.
The Brand Finance report claims that this is the first time Tesla has been at the top of its automotive brand value list. The publication also notes that it’s the first time an automaker has been at the top of the list that doesn’t produce any gas-powered vehicles. Valuation Director of Brand Finance Alex Haigh shared:
“This growth in brand value is a positive sign for Tesla as it indicates that consumers are recognising and valuing the brand more, which could potentially lead to increased sales and revenue in the future. The automotive industry is highly competitive, so for Tesla to achieve this level of growth in brand value is a noteworthy accomplishment and a testament to the value of the Tesla brand.
Haigh goes on to add that as Tesla moves forward, it will need to work hard to protect its impressive value. Keeping a high value in such a competitive market will only work to increase the US EV maker’s brand strength. Greater brand strength should bring Tesla even more success.
The report goes on to share that Tesla’s current value is over five times higher than its pre-pandemic value. Last year’s automotive brand value leader, Mercedes-Benz, has seen its value come down 3%, which puts it at $58.8 billion.
Meanwhile, Toyota held the second-place position in 2022, and its value is now down a whopping 18%, at $52.5 billion. The Japanese automaker recently got a new CEO and is planning on moving forward with an EV future, though it’s seen by many as too little too late.