Saturday, October 24, 2015

Brand Loyalty

The market appears to be punishing Tesla due to an unfavorable review by product review bastion consumer reports (on Tuesday, October 20th shares dropped ~$20 in the afternoon before clawing back a slight gain before the closing bell). Having grown up in a Consumer Reports household I can understand the wariness some could have over owning a Tesla given the recent review. Thogh as this article in Techcrunch points out even though Consumer Reports found owners who had complaints they still thought glowingly of the brand. Automobiles have reached a commodified levle for many consumers as most cars meet the standard needs for average drivers (i.e. they get them from point A to point B) so generating that level of loyalty for a car is fantastic.

References:
Tesla Shares Plummet After Consumer Reports Drops Model S Recommendation by Alex Wilhem (http://techcrunch.com/2015/10/20/tesla-shares-plummet-after-consumer-reports-drops-model-s-recommendation) Published on: 10.20.2015 and Accessed on: 10.20.2015