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Tesla’s price cuts drive online traffic spike

Published 06/02/2023, 08:05 AM
© Reuters.  Tesla’s (TSLA) price cuts drive online traffic spike
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Citi has recently revised their "mindshare" tracker for electric vehicles (EVs), which keeps tabs on web traffic related to EVs. This tracker evaluates the level of engagement on websites associated with the overall EV market, as well as specific brands or companies, with the latter serving as a possible predictor of future EV market share and brand influence.

Latest data from the “mindshare” shows that Tesla’s April price cuts drove higher traffic in April (51% vs. 47% in March). Preliminary May data suggests the company’s share remained above March levels (48% vs. 47%) and above Q1 (46%), but below April’s initial spike.

In addition, Citi conducted an analysis of net inflow and outflow traffic for various bi-directional automaker pairings in April and May. The purpose was to identify patterns of conquest, and the findings revealed that Tesla (NASDAQ:TSLA) has consistently experienced significant net inflows from all automakers, particularly after the price reduction in April. Furthermore, among Tesla's total visits, the strongest net inflows came from Hyundai/Kia (+3.2%), Volvo (OTC:VLVLY) (+2.1%), and General Motors (NYSE:GM) (+1.8%; split evenly between Chevrolet and other GM brands).

Citi’s mindshare also tracks visit duration, pages per visit and bounce rates (those leaving a website after viewing one page) and found that the top performers continue to be Tesla, Ford (NYSE:F), BMW (OTC:BMWYY) and Porsche (OTC:POAHY). Notable underperformers include Fisker (NYSE:FSR) and Volvo.

Shares of TSLA are up 1.58% in premarket trading on Friday.

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