Tesla overtakes Mercedes-Benz to becomes world’s most valuable auto brand

Global brand valuation consultancy Brand Finance on Tuesday said that electric carmaker Tesla has overtaken Mercedes-Benz to becomes the world’s most valuable auto brand. Last year’s leader Mercedes-Benz ‘s brand value is down by 3 per cent to $58.8 billion, latest report by Brand Finance said. “This growth in brand value is a positive sign for Tesla as it indicates that consumers are recognising and valuing the brand more, which could potentially lead to increased sales and revenue in the future,” Alex Haigh, Valuation Director of Brand Finance, said.

Every year Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. It found that Chinese brand Sokon—brand value more than doubling to $739 million—is the fastest growing automobile brand after a successful 2022 in which it sold 21 per cent more vehicles year-on-year. The brand’s forecasts have also increased, helping further boost brand value.

Ferrari (brand value down 8 per cent to $7.4 billion) is the strongest Automobile brand with a Brand Strength Index score of 90.7, and AAA+ brand rating, according to the study. “Despite a brand value reduction, Ferrari in fact had a strong financial performance in 2022. Its brand reduction in USD was caused by adverse foreign exchange movements and concerns about future financing requirements,” the report said.

Tesla, however, gained the highest Sustainability Perception Score (5.43 out of 10) and Value ($17.8 billion). Tesla is well known as a pioneer of the EVs and battery technology that is aiding the transition to a lower carbon economy. This image has clearly carried across into the perceptions held by global consumers. “The automotive industry is highly competitive, so for Tesla to achieve this level of growth in brand value is a noteworthy accomplishment and a testament to the value of the Tesla brand. Tesla must now work to protect this moving forward in order to build long-term brand strength,” Alex Haigh said.

Uber, the study said, is the most valuable mobility brand in 2023, up 2 per cent year-on-year to $23.3 billion. “Uber’s dominance in the sector is highlighted by the fact that its brand value is more than three times the value of the second most valuable Mobility brand, Enterprise (brand value up 9 per cent to $7.7 billion),” the report added.

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