Among the fundamental objectives of Elon Musk was precisely this: to achieve the golden scepter of the world automobile brands in terms of company brand value. Tesla has in fact risen two places in the ranking of car companies, obtaining an outstanding valuation of 66.2 billion dollars.
Just a few months ago - at the beginning November 2022 - most experts were talking about the ranking of the best valued automotive brands on the planet. Tesla appeared there in the third position (twelfth of the total) with a valuation of 46 billion dollars. Above this were only Mercedes-Benz in second position (eighth of the total) and 56,1 billion dollar valuation, and Toyota in the first place (sixth of the total) with 59,7 billion dollars in valuation.
Now, according to Brand Finance they have given this ranking a thorough review and have positioned Tesla above the two brands mentioned before, after having achieved an additional valuation of 20 billion dollars. This is quite a milestone within the automotive sector itself, since it is the first time in history that a 100% electric vehicle brand surpasses others as well established as the Japanese Toyota, the brand that currently sells the most cars in the world.
This can be explained as follows: Tesla has done things well in recent months; with the presentation of its “Master Plan 3” and the promise of arrival of its new affordable electric car (Model 2 or Model C), as well as an update of cars currently on sale, such as the Tesla Model 3. These steps have given the Austin brand an important, critical role and presence in the automotive sector, both for other companies and for customers themselves.
Alex Haigh, Director of Valuation at Brand Finance, admitted that “This growth in brand value is a positive sign for Tesla, as it indicates that consumers are recognizing and valuing the brand more, which could lead to an increase in sales and revenue in the future. For Tesla to achieve this level of brand equity growth is a remarkable achievement and a testament to brand equity”. At the same time, the official goes on to add that the company will have to continue working hard to protect, and even increase, its already impressive market value.
On the other hand, and apart from the outstanding rise of Tesla, mention must also be made of the fall of Mercedes-Benz and Toyota; especially the latter. The German brand as a matter of fact maintains its second place, although with a decrease of 3% as compared to 2022 (which represents almost 2 billion dollars in its valuation); a fact that does not have a specific or logic explanation and that may be due to the continuous oscillations the market usually has.
However, Toyota has suffered a significant drop of 18%, thus going from position 1 to 3 of automobile brands. Experts point to a constant, somehow permanent internal controversy of opinions within the brand leadership itself, due to the varying positions of its top management on the adoption, to a greater or lesser extent, of electric cars. As of now though, with the arrival of a new CEO and his medium-term plans, everything seems to appear much more stable along these lines.
Other brands are also within this ranking: among those that have grown the most are German BMW and Porsche; while others have lost value, such as Volkswagen and Honda, Ford and Audi are the ones that keep almost the same position on the list as a year ago.
Tesla's recent achievements in becoming the most valuable car brand in the world demonstrates the growing importance and dominance of electric vehicles in the automotive industry. However, this also signifies an evolving market that pushes traditional automotive giants like Mercedes-Benz and Toyota to reassess and adapt their strategies in response to the rapidly changing landscape. As the commitment to sustainable mobility and advanced technologies continues to drive industry trends, it will be crucial for all car manufacturers to embrace innovation and agility in order to stay competitive and maintain their positions in the global market.
All images courtesy of Tesla Inc.
Nico Caballero is the VP of Finance of Cogency Power, specializing in solar energy. He also holds a Diploma in Electric Cars from Delft University of Technology in the Netherlands, and enjoys doing research about Tesla and EV batteries. He can be reached at @NicoTorqueNews on Twitter. Nico covers Tesla and electric vehicle latest happenings at Torque News.