Tesla Inc. (NASDAQ:TSLA) is pulling customers away from other companies, especially in the U.S. where it continues to be the dominant player in the electric vehicle (EV) market.
According to the S&P’s Global Mobility report, Tesla’s EV-only strategy is giving the company a retention advantage. Model Y currently has a brand loyalty of 60.5%. As new EVs arrive, loyalty is likely to be tested, the report continued.
See also: Tesla Deserves Higher Valuation For 'Optionality Value,' Says Analyst — Highlights These Revenue Drivers
About 74% of Tesla buyers are coming from outside the brand, which the report calls as "conquest rate." The Austin, Texas-based company is acquiring customers mostly from Toyota Corp. (NYSE:TM), Honda Motor Company (NYSE:HMC), BMW AG (OTC:BMWYY) and Mercedes-Benz Group AG (OTC:MBGAF).
