Tesla has reigned as the top choice for wealthy electric vehicle buyers for years, but is all that about to change? MarketWatch’s Sean Tucker reports that recently, more wealthy buyers are considering BMWs than Teslas. Tucker writes:
More people in the market for a luxury car in the fourth quarter of 2022 considered a BMW than any other car brand in the fourth quarter of 2022. The number of shoppers considering a Tesla TSLA, -1.55% plunged, falling to a single-digit percentage.
The now-Texas-based electric-vehicle maker cut prices drastically shortly after the end of the quarter. Early reports suggest the price cuts triggered a sales rally that may reverse the prior plunge.
The numbers come from Kelley Blue Book’s fourth-quarter Brand Watch report — a consumer-perception survey that also weaves in shopping behavior to determine how a brand or model stacks up with its segment competitors on a dozen factors key to a consumer’s buying decision.
BMW BMW, -0.16% holds a comfortable lead over its luxury peers, with 22% of would-be luxury buyers including products from the Bavarian company in their search last quarter. Lexus came in second at 19%, with GM’s GM, 1.32% Cadillac making the podium at 18%.
Tesla slipped from 12% in the third quarter to 9% in the fourth. Brand-loyalty studies suggested that controversy surrounding CEO Elon Musk and his 2022 purchase of Twitter may have driven a decline in interest in Tesla products. But recent price cuts may have begun to reverse the slide.
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