American electric automaker Tesla amazed the business world when Brand Finance released its 2023 World’s Most Valuable Brands rankings, despite a rough year in 2022. Teslarati reports that the EV giant advanced 19 spots from 28th place in 2022 to 9th place this year.
What’s the big deal?
Tesla was among the most valued firms in 2021, with a more than $1,200 billion market cap in November of that year. However, it must be noted that its brand value was significantly lower than its market valuation.
As mentioned above, Tesla ranked 28th with a brand value of $46 billion in February 2022 on the 2022 World’s Most Valuable Brands report.
Tesla was rapidly increasing the value of its brand. It rose more than 100 spots to the 42nd position in 2021 and another 14 spots to the 28th position in 2022, per Auto Evolution.
However, CEO Elon Musk‘s announcement of his planned Twitter acquisition adversely affected the automaker’s market cap. As per the report, it lost about one trillion dollars at the end of 2022.
From its all-time high in November 2021, it has fallen significantly to its present value of $412 billion.
Nonetheless, Tesla’s brand value survived. Instead, Tesla climbed 19 ranks to land in ninth place among the Top 25 Most Valuable Brands in the World for 2023.
“In the automotive sector, the American brand Tesla (brand value up 44% to US$66.2 billion) sold the most electric cars globally in 2022, which contributed to its status as one of the ranking’s fastest growing brands. 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 time of publication.
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
About Brand Finance
Brand Finance has its corporate headquarters in the City of London. It is a private brand strategy and valuation firm founded in 1996.
Its annual brand rankings have aided clients in determining the monetary worth of their brands.
Based on the 2023 World’s Most Valuable Brands rankings, the brand value of Tesla has increased by 433% during the last three years. In light of this, it would seem that Elon Musk’s shenanigans on Twitter did not weaken the automaker’s brand and reputation, as naysayers suggest.
Check the full report here.
