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Tesla brand image basis of strength: Brand perception lies behind recent success and high prospects for 2019
Tesla remains a leading player in the global electric vehicle market, and now it is one of the most globally recognisable car brands. Much of the recent success in overcoming serious problems and building a loyal clientele is attributable to the strength of brand image. No other mass-production car firm can at present rival the positive perception among investors and consumers alike in the brand. Even though Tesla will come under increasing pressure over the next few years, for the time being the company is secure as the first company many consumers think of when contemplating electric vehicles, and that will enable the automaker to thrive in 2019 and beyond.
Before October 2018 Tesla had only twice made a quarterly profit – and those occurred between 2013 and 2016. Faith in the Tesla brand sustained investment in factories and products even as spending rose and the promised returns failed to materialize. But now demand is reported to be strong. Without faith in the brand, chances are Tesla would never have made it so far. A successful 2018 will now sustain the company through 2019 even as the likes of Volkswagen begin to release a plethora of electric models. Being associated with the ‘car of tomorrow’ has been vital in creating the conditions for Tesla to have a strong 2019.
Conventional wisdom in the car manufacturing industry holds that cost overruns, delays and poor reliability is very bad news, especially when producing premium priced products for clients used to expecting high-quality. Many fail at such a point. That such a fate has not befallen Tesla can be put down to the successful brand image. Many customers have been early adopters, and that has proved useful in creating excitement around the car maker. The brand image has been vital in not allowing adverse press coverage concerning reliability to damage sales. Sales continue to rise, suggesting the association with owning a Tesla is strong enough to overcome frustrations caused by breakdowns and late vehicle deliveries.
VW has stated in 2020 electric models will have similar specifications to Tesla but at half the price; other car giants such as Audi are on a similar trajectory. Whilst the competition will stiffen considerably in the next few years, none of the globally leading car makers have the degree of brand association with innovative electric technology that Tesla has come to rely on. Undoubtedly the current brand image of Tesla will come under much greater pressure in the years to come as rivals showcase alternative cars. But by the point at which that is likely to occur, Tesla could have easily sold so many vehicles that it is not anything like as reliant on brand image as it is at present.
For more on Tesla please visit: https://store.marketline.com/report/mlae16763sa–tesla-energy-operations-inc-company-profile-swot-analysis/