Tesla Motors Inc (TSLA) Brand Loyalty Is Because Of Luxury, Reliability and Performance: Ben Kallo


In a program on CNBC, Ben Kallo, R.W. Baird senior research analyst said that gas prices are not likely to harm the demand of Tesla Motors Inc (NASDAQ:TSLA). He thinks that people don’t buy Tesla Motors Inc (NASDAQ:TSLA) cars just to save the gas money. They buy Tesla Motors Inc (NASDAQ:TSLA) because of the reliability, usage, luxury and brand loyalty. Tesla Motors Inc (NASDAQ:TSLA) has earned its fame around the US because of its cars. The global tumble in gas prices have increased the demands of conventional cars and it was rumored that electric car makers will face immense pressure in terms of demands in the coming days.

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Kallo said that Tesla Motors Inc (NASDAQ:TSLA) has rallied a community around it. It has its own class of customers. It has a separate category which cannot be tagged under normal and conventional car makers. This is the reason why the company is not affected by sudden changes in prices, trends and sales plummets. Kallo thinks that Tesla Motors Inc (NASDAQ:TSLA) makes aspirational vehicles which imbibe a large number of customers who are willing to spend money for luxury.

Kallo referred to a recent report of Consumer Reports in which, Tesla Motors Inc (NASDAQ:TSLA) has been ranked at number one in terms of overall rating. The company has earned this position again instead of the demand and supply problems. Kallo reiterated the fact that people spend money for luxury, reliability, performance and peculiar electric car experience, which is given by Tesla Motors Inc (NASDAQ:TSLA) only.

Kallo also said that there is no correlation between global oil price decline and Tesla Motors Inc (NASDAQ:TSLA) sales. Tesla Motors Inc (NASDAQ:TSLA) is independent of these variables mainly because its customer base is different from other brands.

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