Photo: Brand Finance
Despite a turbulent year in 2022, Tesla surprised everyone when Brand Finance published its 2023 World’s Most Valuable Brands rankings. The EV maker climbed 19 spots into the hierarchy to claim the number 9 position, ahead of Mercedes-Benz and Toyota.
Tesla has become one of the most valued companies in 2021, with a market cap of over $1,200 billion in November of that year. Nevertheless, its brand value was far from its market valuation. In February 2022, when Brand Finance released the 2022 World’s Most Valuable Brands report, Tesla was number 28, with a $46 billion brand value. Mercedes-Benz was more valuable, at $61 billion, and so was Toyota, at $64 billion. Tesla was on a fast track to growing its brand value, though, having climbed more than 100 places to the 42nd spot in 2021 and another 14 to number 28 in 2022.
Nevertheless, the tables turned in 2022 after Elon Musk made the mistake of announcing he wanted to buy Twitter. From there, things went south very quickly, and at the end of 2022, Tesla’s market cap lost almost one trillion dollars. It currently stands at $412 billion, a far cry from its all-time high in November 2021. With all this drama, you’d expect Tesla’s brand value to suffer as well, but it didn’t happen. Instead, Tesla was ranked 9th among 2023 World’s Top 25 Most Valuable Brands after climbing 19 spots.
Tesla was among the big winners in brand value, alongside Chinese carmaker BYD, with the biggest value increases. Brand Finance cites strong demand for electric vehicles as the main factor contributing to Tesla’s jump in brand value. Tesla brand was valued at $66.2 billion, up 44% compared to last year. This puts it ahead of Mercedes-Benz ($59 billion, down 3.2% to 16th place) and Toyota ($52.5 billion, down 18.3% to 19th place). Tesla had the fastest-growing brand value over the past three years, with a 433% increase.
“Observers of Tesla’s share price over the last few months may be surprised by its result in our table this year. However, it remains one of the lowest brand values in proportion to overall business value, at only 16.8%, in comparison to Mercedes-Benz at 32.1% at the time of publication,” said David Haigh, Chairman & CEO of Brand Finance. “Other brands may be getting into gear to compete with the pre-eminent EV producer, but the public still sees Tesla as significantly more innovative and sustainable in Brand Finance’s Global Brand Equity Monitor study, a fact that outweighs the latest headlines about Tesla’s mercurial CEO.”
Brand Finance is an independent brand valuation and strategy consultancy with experience in quantifying brand financial value since 1996. The brand valuation considers brand impact (how much the brand impacts profitability in the sector versus generic brands) and brand strength. The latter is a complex calculation, taking into account brand-related performance in the market, the brand’s activity, and perceptions sourced from market research.
Nevertheless, the tables turned in 2022 after Elon Musk made the mistake of announcing he wanted to buy Twitter. From there, things went south very quickly, and at the end of 2022, Tesla’s market cap lost almost one trillion dollars. It currently stands at $412 billion, a far cry from its all-time high in November 2021. With all this drama, you’d expect Tesla’s brand value to suffer as well, but it didn’t happen. Instead, Tesla was ranked 9th among 2023 World’s Top 25 Most Valuable Brands after climbing 19 spots.
Tesla was among the big winners in brand value, alongside Chinese carmaker BYD, with the biggest value increases. Brand Finance cites strong demand for electric vehicles as the main factor contributing to Tesla’s jump in brand value. Tesla brand was valued at $66.2 billion, up 44% compared to last year. This puts it ahead of Mercedes-Benz ($59 billion, down 3.2% to 16th place) and Toyota ($52.5 billion, down 18.3% to 19th place). Tesla had the fastest-growing brand value over the past three years, with a 433% increase.
“Observers of Tesla’s share price over the last few months may be surprised by its result in our table this year. However, it remains one of the lowest brand values in proportion to overall business value, at only 16.8%, in comparison to Mercedes-Benz at 32.1% at the time of publication,” said David Haigh, Chairman & CEO of Brand Finance. “Other brands may be getting into gear to compete with the pre-eminent EV producer, but the public still sees Tesla as significantly more innovative and sustainable in Brand Finance’s Global Brand Equity Monitor study, a fact that outweighs the latest headlines about Tesla’s mercurial CEO.”
Brand Finance is an independent brand valuation and strategy consultancy with experience in quantifying brand financial value since 1996. The brand valuation considers brand impact (how much the brand impacts profitability in the sector versus generic brands) and brand strength. The latter is a complex calculation, taking into account brand-related performance in the market, the brand’s activity, and perceptions sourced from market research.
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