Move over gas guzzlers, electric vehicles are taking over the roads of America at lightning speed. A new Bloomberg study reveals EV adoption in the US is accelerating like never before despite growing economic headwinds.
The report highlights how Tesla, the current EV king, is lapping the competition with a staggering 87% brand retention rate among existing owners. To put that in perspective, Toyota and Lexus – two of the biggest legacy automakers – only managed 54% and 67% retention respectively from their loyal gas loyalists.
But perhaps more impressive is the fact that 81% of prospective Tesla buyers are new customers ditching their old brands like a bad habit. Only 42% of potential Nissan EV buyers are making the leap from gas or another automaker.
1,627,722 people that bought a Tesla in 2023 never owned one before. “Super high retention rate of Tesla buyers is an underappreciated point,” boasts Martin Viecha, Head of Investor Relations at Tesla. He adds that with “~90% of Tesla’s vehicles sold in 2023 going to new owners, the replacement cycle hasn’t even fully kicked in yet.”