Tesla rules the EV roost for a lot of reasons. Trust is one reason, according to an Edmunds survey.
Tesla, with over 50% market share in the U.S., is the most trusted automaker, followed by BMW, according to an Edmunds’ survey. The results were released on March 26. Toyota and Honda ranked third and fourth, respectively, among the brands that “consumers say they trust most to make the best EV,” Edmunds said. Chevrolet and Ford rounded out the top six.
Tesla trust: “Tesla has built considerable consumer trust as a brand that was bred to produce nothing but electric vehicles,” Jessica Caldwell, Edmunds’ head of insights, told me in an email. “And has delivered a track record of success in doing just that.” According to Edmunds data, the Tesla Model Y was the top-selling EV nationally in 2023 and the top-selling vehicle overall in six states and Washington D.C. Caldwell called the relatively high ranking of Japanese EVs “impressive” considering the fact that they actually sell relatively few EVs in the U.S.
Ironically, Toyota and Honda are only minor players in the U.S. BEV or Battery Electric Vehicle — aka pure EV — market. It wasn’t until 2022 that Toyota began producing the bZ4X, its first pure electric vehicle for the U.S. market in about a decade. (The RAV4 EV was available starting in 1997 until roughly 2014 but saw meager sales). Toyota has offered the Prius and Prius Prime for years, a hybrid and plug-in hybrid respectively with gas engines. And Honda, until recently, didn’t offer any pure electric vehicles for the U.S. market.
Tesla has to stay competitive: Car shoppers have shown a willingness to stray away from their loyalty tendencies when considering an EV purchase, according to Caldwell. While Tesla’s Model Y SUV has seen unprecedented EV success and become the top selling EV in many markets globally, legacy car manufacturers have been flooding the market with new EVs in recent years. To maintain market share, Tesla has been reducing prices for both its Model Y and Model 3 and offering competitive leases that often include a $7,500 incentive spread across the term of the lease. Among EV “intenders” — survey respondents who indicated they were considering an EV for their next vehicle purchases — surveyed by Edmunds, 47% say they are seeking an EV purchase below $40,000, and 22% are interested in EVs priced below the $30,000 threshold.
The market reality: Today, there are no new EVs with an average MSRP below $30,000, according to Edmunds. (The Bolt EV, one of the cheapest EVs, has been discontinued until 2025, though there are 2023 models still available at dealers.) And there are only four below the $40,000 mark —Mini Hardtop 2 Door, Nissan Leaf, Fiat 500e and Hyundai Kona Electric. The average transaction price of an electric vehicle was $61,702, while all other vehicles stood at $47,450, Edmunds said. “It’s worth noting that the consumers who are most comfortable with the idea of purchasing a new EV might also not be in a financial position to afford one,” according to Edmunds. “Survey data reveals that 90% of 18- to 24-year-olds say they are open to an EV as their next purchase, and 83% of 24- to 34-year-olds say they are interested as well.”
Finally, note that in a similar survey done by Bond Brand Loyalty this past week, Tesla led in owner satisfaction because of its “best-in-class charging experience, seamless OTA updates, and customer-centric purchasing journey (both in-store and online).”