Tesla Becomes World’s Most Valuable Car Brand, Witnesses 44% Growth

Brand value tracker Brand Finance reported that Tesla’s value surged about 44% to the top spot. According to the agency, this is the first time that Tesla has topped the auto brand value list. Another interesting fact is that this is the first time an automaker has topped the list for not producing any fossil fuel-powered vehicles.

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No wonder it’s a huge boost for the Elon Musk-led electric car company, as the automaker has had some rough times over the past few years. So far, however, 2023 has been arguably positive for the car company. Tesla has made major price cut announcements in multiple markets around the world starting in 2023, and these announcements are still ongoing, causing a lot of trouble for rival car brands in the global electric vehicle field. These price reduction announcements helped Tesla secure a flood of new orders.

While many investors don’t expect Tesla’s stock to soar despite recent price cuts that have led to a surge in demand, the automaker’s value is rising while that of competing brands is falling.

When talking about Tesla’s valuation growth, Alex Haigh, the agency’s valuation director, said that the growth of brand value is a positive signal for Tesla, because it shows that consumers are more recognized and valued. For the brand, this could lead to future sales and revenue growth. “The auto industry is highly competitive, so for Tesla to achieve this level of growth in brand value is a notable achievement and a testament to the value of the Tesla brand,” he further added. Haig also said that as Tesla moves forward, it needs to work hard to protect its impressive value.

First published date: April 11, 2023 at 11:57 am IST