Tesla is the fastest-growing brand of 2021, with an unprecedented 184% increase in brand value, according to a new report from Omnicom's brand consultancy Interbrand.
According to Interbrand’s 2021 Best Global Brands, Tesla saw the largest rise in rankings, moving 26 places to No. 14, with a brand worth of $36 billion.
The brand values are not the same as market capitalization. The calculation is based on Interbrand’s methodology that includes financial performance of the branded products or services, the role the brand plays in purchase decisions and the brand’s competitive strength and its ability to create loyalty and, therefore, sustainable demand and profit into the future. The research covers the period between July 1, 2020 to June 30, 2021.
Tesla famously does not do much paid advertising. But in the report, Interbrand states that Tesla's meteoric rise was achieved "with a ubiquitous social media presence that enhanced its brand values, consolidating its position as the world-leading electric vehicle manufacturer.”
The report also adds that the brand’s core purpose, “to accelerate the world’s transition to sustainable energy," resonates with a growing, loyal consumer base. It notes that "even with anecdotal reports of reliability issues, Tesla customers score high satisfaction, significantly above peers in this sector.”
According to Interbrand Global CEO Charles Trevail, the company identified three key factors in brands’ growth this past year: direction, agility and participation. Direction indicates that brands set a clear direction, ensuring that the entire organization knows where it is going, and is working toward the same ambition.
Agility denotes that brands move fast, bringing new products and services to market and, where necessary, pivoting to address changing customer needs. Participation shows that brands “ultimately bring people on a journey with them and make them part of the movement to create an engaging brand world."
“Perhaps unsurprisingly, given the constantly evolving business landscape, employee buy-in, adapting to change and a strong customer base have helped certain brands to thrive,” Trevail said in a statement. “It’s worth calling out Tesla’s growth over the past year — a three-figure increase in brand value is unprecedented in the past 22 years of Best Global Brands. Tesla is a brand that epitomises the importance of brand direction, agility and participation, so I’m unsurprised Tesla made the biggest leap up the Best Global Brands ranking in 2021.”