More Luxury Car Shoppers Consider BMW; Tesla Interest Drops

More luxury car shoppers considered a BMW than any other car brand in the fourth quarter of 2022. The number of shoppers considering a Tesla plunged, falling to a single-digit percentage.

The Texas-based electric vehicle maker cut prices drastically shortly after the end of the quarter. Early reports suggest the price cuts triggered a sales rally that may reverse the plunge in the current quarter.

The numbers come from Kelley Blue Book’s fourth-quarter Brand Watch report – a consumer perception survey that also weaves in shopping behavior to determine how a brand or model stacks up with its segment competitors on a dozen factors key to a consumer’s buying decision.

BMW holds a comfortable lead over its luxury peers, with 22% of shoppers considering one of Munich’s finest cars in their search last quarter. Lexus came in second at 19%, with Cadillac making the podium at 18%.

Tesla slipped from 12% in the third quarter to 9% in the fourth. Brand loyalty studies suggested that controversy surrounding CEO Elon Musk and his 2022 purchase of Twitter may have driven lower interest in Tesla products. But recent price cuts may have begun to reverse the slide.

The Top 10 Most-Considered Brands

SUVs on the Rise; Sedans Slipping

Shopping for SUVs rose to 68% of all luxury vehicle shoppers, up a percentage point from the previous quarter but down from 70% a year ago. Shopping for luxury cars slipped to 51% from 53% in the last quarter but was still up from 49% the year before.

The Buick Enclave knocked the Cadillac Escalade from the top spot it held for the previous three quarters.

The Top 10 Most-Considered Models: