Tesla’s Brand Decline: A Shocking Turn in EV Market

A recent analysis by UBS reveals a notable decline in Tesla’s brand appeal among consumers. The data shows that only 18% of buyers considered Tesla as their top choice last year, a drop from 23% in 2022.

In the United States, Tesla’s positive perception has plummeted from 38% to 29%. European consumers are also losing interest, with those rating Tesla as their first pick dropping from 20% to 15%.

The situation is more severe in China, where the desire for Tesla vehicles has significantly waned. The consumer preference for Tesla in China fell to 14% last year, down from 18% in 2023, and a staggering 30% in 2020. This shift is largely attributable to the emergence of competitively priced domestic electric vehicles that boast advanced technology not readily available to Western buyers. UBS analysts noted, “In China, we see intense competition and Tesla is no longer seen as the technology leader.” They also pointed to brand damage stemming from CEO Elon Musk’s public position as a factor in Europe.

As Tesla faces increased competition, both established brands like BMW and newcomers such as Xiaomi are strategically positioning themselves to capture market share. Xiaomi’s recently launched SUV, the YU7, has been well-received for its aesthetic appeal, while BYD is posing a considerable threat due to its strong sales. Notably, in April, BYD outsold Tesla in Europe for the first time, achieving 7,231 EV deliveries, a remarkable 169% increase compared to the previous year. Meanwhile, Tesla’s sales plunged by 49%, with just 7,165 units sold that month.

This shift reflects a broader evolution in global electric vehicle sales, which rose by 28% across Europe, demonstrating a growing trend away from Tesla as the dominant choice among consumers.