Tesla recently reached the $1 trillion market cap. In our search for solid explanations why, it would be natural for the company to lead all rankings evaluating EV companies. After all, bull analysts try to justify the valuation with the leading role Tesla may have in five to ten years in the EV market. But that’s not what a Chinese survey shows.
Created by LandRoads, it was translated and shared by Bridget McCarthy, a financial analyst at Snow Bull Capital. The survey is called “NEV (New Energy Vehicles) Brand Health Index Ranking" and it evaluates popularity, familiarity, reputation, and recommendation.
According to the survey, BYD is the most popular EV brand in China. It is also the third brand with the best reputation and the second when it comes to recommendation and familiarity. The latter is the only ranking in which Tesla leads, and it means that it is the brand most associated with EVs.
Tesla is the second brand in terms of popularity and reputation, which are pretty good results. However, the American brand is not even listed among the five leading brands to pick when it comes to recommendation.
The company that leads this ranking is Li Auto, an EV maker that is only the fifth in popularity, familiarity, and reputation. Anyway, it is the brand with more loyal customers who would recommend it to family and friends.
NIO is the brand with the best reputation in the survey. The Chinese company was only fourth in popularity but third in familiarity and recommendation. That probably has to do with the fact that it is a luxury brand.
Xpeng is another brand that did not make it into the recommendation ranking. It was third in popularity and fourth in familiarity and reputation. Replacing Tesla and Xpeng in that category were Leapmotor in the fifth place and Volkswagen ID in the fourth.
The survey reinforces why Tesla’s market cap has raised so much doubt about its fundaments. Without a marketing department, Tesla relies only on the good impression it may cause on its customers. If it does not appear among the five leading brands in China when it comes to recommendation, the lead it could have on the EV market in a decade is more a belief investors and fans chose to have than something sustained by data and facts.
According to the survey, BYD is the most popular EV brand in China. It is also the third brand with the best reputation and the second when it comes to recommendation and familiarity. The latter is the only ranking in which Tesla leads, and it means that it is the brand most associated with EVs.
Tesla is the second brand in terms of popularity and reputation, which are pretty good results. However, the American brand is not even listed among the five leading brands to pick when it comes to recommendation.
The company that leads this ranking is Li Auto, an EV maker that is only the fifth in popularity, familiarity, and reputation. Anyway, it is the brand with more loyal customers who would recommend it to family and friends.
NIO is the brand with the best reputation in the survey. The Chinese company was only fourth in popularity but third in familiarity and recommendation. That probably has to do with the fact that it is a luxury brand.
Xpeng is another brand that did not make it into the recommendation ranking. It was third in popularity and fourth in familiarity and reputation. Replacing Tesla and Xpeng in that category were Leapmotor in the fifth place and Volkswagen ID in the fourth.
The survey reinforces why Tesla’s market cap has raised so much doubt about its fundaments. Without a marketing department, Tesla relies only on the good impression it may cause on its customers. If it does not appear among the five leading brands in China when it comes to recommendation, the lead it could have on the EV market in a decade is more a belief investors and fans chose to have than something sustained by data and facts.
A research report on EV brand health in China is floating around Chinese social media. Here is one of the charts from the report, translated. Pretty interesting results.$BYDDF $BYDDY $TSLA $NIO $LI $XPEV $VWAGY pic.twitter.com/yGDlPU6On1
— Bridget McCarthy (@bridgemccarthy_) October 26, 2021