Toyota overtakes Tesla as most valuable auto brand

Web Desk

24th Jan, 2025. 11:58 am
Share

Toyota has surpassed Tesla to become the most valuable brand in the automotive industry, with a brand value of $64.7 billion. Tesla, which had been a leader in recent years, now lags behind by more than $20 billion, with a current value of $43 billion.

Tesla’s brand value has seen a significant decline, dropping by 26% in 2024. This marks the second consecutive year of a decrease in the company’s brand value. At the beginning of 2024, Tesla was valued at $58.3 billion, and in 2023, it was valued at $66.2 billion.

Analysts attribute this decline to several factors, including the controversial statements of Tesla CEO Elon Musk and an aging model lineup.

“There are people who think he’s great, but a lot of people don’t think so. If you’re going to buy electric cars, his personality will probably influence your perception of whether you want to buy one of his company’s cars, but that’s just one factor among many,” said David Hay, CEO of a London-based analytical company.

He added, “If Tesla can’t offer a whole series of new products that really excite consumers, and if it can’t mitigate some of the antagonism caused by its leader, the company has passed its peak and will start to fall.”

Despite the challenges, Tesla still maintains strong loyalty in the U.S., with 90% of customers staying loyal to the brand. However, consumer readiness to recommend Tesla has dropped significantly, with only 4.3 out of 10 people willing to recommend the company, down from 8.2 out of 10 in previous surveys.

Toyota now holds the top spot as the most valuable automotive brand, followed by Mercedes in second place with a valuation of $53 billion. Tesla ranks third, with BMW and Porsche rounding out the top five. The research, conducted by Brand Finance, surveyed 175,000 respondents to determine these rankings.

Tesla faces ongoing challenges to regain its position, while Toyota continues to lead the way in the competitive auto industry.