Although Apple Inc. (NASDAQ:AAPL) and Tesla Motors Inc (NASDAQ:TSLA) are worlds apart, they have many things in common. They both boldly stand out for adding that touch of innovation to what their peers deem to be business as usual. Apple Inc. (NASDAQ:AAPL) successfully brought the whole concept of smartphones to the consumer market, and in addition to that, worked up a cool brand that necessitated a premium price.
Although Samsung has, in some ways, managed to chip away at Apple Inc. (NASDAQ:AAPL), the latter still rakes in unbelievable profits and remains a force to reckon with as far as smartphones go. A recent comScore study shows that Apple Inc. (NASDAQ:AAPL) is still the top smartphone in the U.S. with a 39.2% market share compared with Samsung’s 22%.
Apple Inc. (NASDAQ:AAPL) still remains king despite being at the center stage of negative outlook from industry specialists. If anything, this suggests the formidable strength of the brand that is Apple Inc. (NASDAQ:AAPL). From my assessment, Tesla Motors Inc (NASDAQ:TSLA) is slowly following in the footsteps of Apple. Although it is not producing smartphones any time soon, it is working up a strong brand for its electric cars — incredibly strong if I may add.
Another indicator is the rally that has characterized its stock in the past year. Just as I had forecast in a mid May article, Tesla Motors Inc (NASDAQ:TSLA) was bound to go past the $100 mark. At the time, it was trading at around $50. Now however, it has hit highs of $114 and, as of this writing, is trading intimately close to $100. This trend is very reminiscent of Apple at the time when the iPhone craze caught the market.
Tesla Motors Inc (NASDAQ:TSLA)’s rally has not fully played out. There is more hurt coming for the short sellers and if anything, this is merely the tip of the iceberg. Tesla Motors Inc (NASDAQ:TSLA) could become the next Apple, or perhaps even bigger. Here is why.
Incredibly strong brand means customer retention
One key differentiating factor that Tesla Motors Inc (NASDAQ:TSLA) has relative to its peers is its emphatic stance on strengthening its brand. It knows that building brand goes way beyond fancy commercials. The electric car upstart has taken up an active role in engaging its customers. This is well illustrated through the viral growth of TeslaMotorsClub.com, a site dedicated to hosting discussions on Tesla’s luxury electric cars. Here, customers have the chance to freely engage and thrash out ways to improve the Tesla experience. Because of this active involvement of customers, brand loyalty has soared incredibly.