by Morton E. . Sep 20, 2023
Image Credit: Tesla/X
A study from S&P Global Mobility revealed that Tesla owners are very loyal to the company. When the time comes for Tesla owners to replace their cars, they are likely to purchase another Tesla.
Why it matters: According to Jalopnik, automakers typically introduce new vehicle models to create a flow of incoming customers that eventually become returning customers. With such a system in place, a customer can start with an entry-level vehicle and progress through a company's offerings until they eventually move up to cars that are geared for more mature drivers.
Tesla only has four cars that are available today, so the company does not really have this progression. The price gap between the Model 3 and Model S/X is very large, and vehicles that will likely be priced between them, like the Cybertruck, are not released yet. But while some Model 3 owners are migrating to larger EVs like the Rivian R1T, the majority of Tesla drivers seem to be opting in for another Tesla.
What's happening: According to a study conducted by S&P Global Mobility, an impressive 59.9% of all Tesla Model S owners replace their cars with another Tesla. A whopping 72.8% of Model 3 owners were also found to replace their cars with another Tesla. What's interesting is that when a Model 3 owner buys another vehicle, the most common car that they acquire is a Tesla Model Y, or just another Model 3.
The Model Y is also the vehicle with the highest loyalty rate in the market, at 37.3%. The S&P study also indicated that 7.9% of Model S buyers are stepping down to a Model 3, while 18.6% are stepping down to a Model Y. True to form, 21.7% of Model S buyers also opting in for another Model S, while 11.7% purchase a Model X after.
What experts are saying: Kent Chiu, associate director of consulting services at S&P Global Mobility, explained that Tesla has been very successful at migrating its customers through its offerings.
"Tesla is very successful at migrating customers from a Model 3 to a Model Y, which contributes to high loyalty rates. Tesla has taken advantage of the industry's shift toward CUVs. By putting the Model 3 to market first, followed by the Model Y shortly after, it gave customers a path to migrate through the portfolio," Chiu said.
What we have: What's great about Teslas is their compatibility. This is why several of our best-selling items for the Model 3 are also compatible with the Model Y. These include our Hansshow Tesla Model 3/T H72 Rear CarPlay Screen, our Model S/X-inspired Hansshow Model 3/Y Yoke Steering Wheel, and our Hansshow Android 4G 10.25-inch Tesla Model 3/Y Instrument Cluster Heads Up Display.
The same is true for our items that are compatible with both the Model S and Model X. These include our Model S/X Active Sound Exhaust kit and our 2021+ Model S/X Plaid Steering Wheel Carbon Fiber Middle Trim Panel Cover. Both are perfectly compatible with the Model S and Model X.
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