Tesla has become the most valuable car brand in the world, according to the latest survey from Brand Finance.
The electric-car pioneer, led by Elon Musk, saw its brand value skyrocket by 44% to $66.2bn, making it the first car brand to take pole position from traditional combustion engines. This is the first time that Tesla has grabbed the top spot, surpassing last year’s leader, Mercedes-Benz, whose brand value fell by 3% to $58.8bn.
Before the pandemic, Tesla was worth only a fifth of its current value. This year’s survey also saw Toyota’s brand value decrease by 18%, falling to $52.5bn, compared to last year’s runner-up.
Brand Finance Annual Survey
Brand Finance conducts an annual survey of 5,000 of the biggest brands, publishing over 100 reports that rank brands in all sectors and countries.
The fastest-growing car brand, Sokon, which is a subsidiary of the Chinese Dongfeng conglomerate that makes electric vehicles, saw its brand value more than double to $739m, reflecting a 21% rise in sales in 2022 compared to the year 2021. This success has also contributed to boosting the brand’s value.
Ferrari’s brand value declined by 8% to $7.4bn, but the Italian company remains the strongest car brand due to its good financial performance in 2022. However, the decline in brand value was due to concerns about its financing requirements, as well as fluctuations in exchange rates.
Michelin has been declared the most valuable and strongest tire brand with a 2% increase in value to $7.9 billion. Bridgestone and Continental follow in second and third place respectively, with Bridgestone experiencing a 1% decrease in value to $7 billion and Continental seeing a 3% decrease in value to $4.1 billion.
China’s Sailun is the fastest-growing tire brand, with its value increasing by 6% to $7 million. Sailun has achieved this growth by launching its EcoPoint3 tires, which are more sustainable and affordable, after ten years of development.
In the mobility sector, Uber is the most valuable brand in 2023, with its value increasing by 2% to $23.3 billion. This value is three times more than the value of the second-most valuable mobility brand, Enterprise, which rose by 9% to $7.7 billion.
Sustainability Perception Value Score
Brand Finance has released a sustainability perception value score, with Tesla coming out on top in the automotive category, scoring 5.43 out of 10 and valued at $17.8 billion.
Similarly, Uber achieved the highest sustainability perception value score in the mobility segment, with a ranking of $2.4 billion.
𝐁𝐑𝐄𝐀𝐊𝐈𝐍𝐆: Tesla topped the list of the world's most valuable automotive brands, with brand value up 44% to $66.2B, according to a new report from the leading brand valuation consultancy Brand Finance. Mercedes down 3% YoY, Toyota down 18% YoY. $TSLA @elonmusk… pic.twitter.com/V1k4XlbnXQ
— 𝒰𝓂𝒷𝒾𝓈𝒶𝓂 (@Umbisam) April 4, 2023
According to Alex Haigh, Brand Finance’s valuation director, this growth in brand value for Tesla is a positive sign, indicating that consumers are recognizing and valuing the brand more, which could lead to increased sales and revenue.
Haigh also noted that the automotive industry is highly competitive. So, Tesla achieving this level of growth in brand value is a noteworthy accomplishment and a testament to the value of the Tesla brand. However, Haigh emphasized the need for Tesla to work towards protecting and building long-term brand strength.
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