Tesla Cybertruck To Boost Brand's Loyalty Rate Further: Analyst

S&P Global Mobility analysts say the Cybertruck offers existing Tesla owners another reason to stay with the brand.

By: Dan Mihalascu

Oct 2, 2023 at 6:57am ET

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Tesla enjoys the highest customer loyalty rate among all carmakers, and analysts believe the Cybertruck could boost that even further.

Currently, brand-loyal owners of Tesla EVs are rather limited when it comes to making an upgrade as the carmaker's lineup only includes two sedans – Model 3 and Model S – and two crossovers – Model Y and Model X.

However, the Tesla Cybertruck's expected arrival in the coming weeks could provide some needed variety, according to S&P Global Mobility via Automotive News.

The Cybertruck is seen as "vital to keeping Tesla fans within the brand" by Kent Chiu, associate director of consulting services at S&P Global Mobility, which tracks Tesla loyalty data. Other Tesla products that would expand the portfolio are also seen as vital for the brand to maintain its high loyalty rate.

"The Cybertruck, a second-gen Roadster and a vehicle positioned below the Model 3 have all been promised and should migrate existing owners up or perhaps sideways within the brand. Now, Tesla needs to get them to market," Chiu said in a September 13 blog post.

Tesla's overall loyalty rate is 68 percent, far above the industry's average luxury brand loyalty rate of 46 percent. This means that just 32 percent of owners leave Tesla to buy a new vehicle.

The loyalty rate rises to a spectacular 90 percent when Tesla owners specifically purchase a battery-electric vehicle – only 10 percent of Tesla owners leave the brand to buy an EV from another carmaker.

While the Cybertruck's wild styling make it an unusual vehicle, current Tesla owners appear to be eagerly awaiting its debut. A survey of Model 3 owners published by Bloomberg in July revealed that about half of those planning to buy a new vehicle in the next two years said they were considering a Cybertruck. More than 7,000 verified Model 3 owners completed the survey.

It's likely that many Model Y owners think the same, especially since they can only upgrade to a Model S or Model Y at the moment, and those are much more expensive vehicles starting around $75,000 and $80,000, respectively. Mind you, one of the big unknowns regarding the Cybertruck is pricing.

Kelley Blue Book said in July it expected Tesla's electric pickup to start around $50,000, which would be similar to the Ford F-150 Lightning. A $50,000 Cybertruck would certainly appeal to many Model 3 and Model Y owners, and many Model S and Model X owners would probably be interested in higher-spec Cybertruck trims.

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An early sign of the Cybertruck's popularity is the unofficial online tally of reservations, which estimates the total number at 2 million for the electric pickup.

Tesla CEO Elon Musk said in May that Cybertruck sales could range between 250,000 and 500,000 a year, depending on demand.