Tesla becomes world's most valuable automotive brand, witnesses 44% growth
Tesla has remained one of the most lucrative automotive brands for investors as it has been a highly valuable automotive brand over the last few years. The US electric vehicle manufacturer has now surpassed Mercedes-Benz and Toyota to become the most valuable automotive brand globally. The automaker has moved up two positions on the list of automotive brands and is now valued at an impressive $66.2 billion.
Brand value tracking agency Brand Finance reports that Tesla's value has soared by some 44 per cent to rise to the top of the chart. The agency claims that this is the first time Tesla has been at the top of the automotive brand value list. Another interesting fact is that this is the first time an automaker has been at the top of the list that doesn't produce any fossil fuel-powered vehicles.
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No wonder this comes as a significant boost for the Elon Musk-led EV company, as the automaker has been through some rough patches over the last few years. However, the year 2023 has been arguably positive for the auto company thus far. Tesla started 2023 with major price cut announcements made in multiple markets worldwide, which are still underway, causing much trouble for the rival automotive brands in the global EV space. These price cut announcements have helped Tesla to rake in fresh orders in a significantly large numbers.
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Despite the recent price cut-induced demand spike, many investors anticipated that Tesla's stock wouldn't surge, but the automaker's value is rising, while competing brands are witnessing a drop in their respective values.
Speaking about the valuation growth of Tesla, the agency's valuation director Alex Haigh said that this growth in brand value is a positive sign for Tesla as it indicates that consumers are recognising and valuing the brand more, which could potentially lead to increased sales and revenue in the future. "The automotive industry is highly competitive, so for Tesla to achieve this level of growth in brand value is a noteworthy accomplishment and a testament to the value of the Tesla brand," he further added. Haigh also said that as Tesla moves forward, it will need to work hard to protect its impressive value.