National Post

Tesla shares reverse on rebuff by Consumer Reports.

- DANA HULL

SAN FRANCISCO • Consumer Reports magazine won’t give Tesla Inc.’s compact Model 3 car its recommenda­tion because of the electric car’s long stopping distances and difficult-to-use controls.

The magazine said the Model 3’s 60 miles per hour stopping distance of 152 feet was “far worse than any contempora­ry car we’ve tested.” It took 7 feet more that Ford Motor Co.’s F-150 full-size pickup. The company told Consumer Reports that its own tests averaged a stopping distance of 133 feet and that results vary based on weather, tire temperatur­e and other conditions.

Consumer Reports once gave the larger Model S its highest rating ever, lending credibilit­y to the upstart maker of electric-powered vehicles — and prompting Chief Executive Officer Elon Musk to declare his love for the magazine. But it went on to withhold its recommenda­tion for that car on the basis of its below-average reliabilit­y.

Tesla shares dialed back from an earlier gain of as much as 5.3 per cent, and ended the day up 2.8 per cent to US$284.49 in New York. The stock had been rallying after a Berenberg analyst raised his price target to US$500 based in part on the Model 3 costing significan­tly less to build than the Model S.

Consumer Reports praised the car’s battery range, handling and “exhilarati­ng accelerati­on” that could make it a strong competitor to performanc­e-oriented luxury makes, such as BMW AG’s 3 Series and the Audi A4.

But the Model 3’s stiff ride, unsupporti­ve rear seat and excessive wind noise at highway speeds hurt its road-test score. In the compact luxury sedan class, most competitor­s deliver a more comfortabl­e ride and rear seat.

The Model 3 has faced repeated production delays and manufactur­ing bottleneck­s at its assembly plant in Fremont, Calif., and battery production site near Reno, Nev., which the company says are starting to clear. Tesla delivered 8,180 of the sedans in the first quarter, making it the best-selling electric car in America, and almost a half-million people have put down US$1,000 deposits for Model 3s.

In a letter to shareholde­rs earlier this month, Musk said the company would begin offering new options such as all-wheel drive — and a base model with a standard-sized battery pack — once the company reaches a production rate of 5,000 cars a week.

Over the weekend, Musk tweeted that a dual-motor, all wheel drive performanc­e version of the Model 3, with all options except for Autopilot, will be US$78,000. The company has yet to manufactur­e the base version of the car, which is supposed to start at US$35,000 before options or incentives.

“The lack of a Consumer Reports recommenda­tion won’t hurt the brand amongst its loyal following but certainly makes it harder to penetrate the mass market,” Rebecca Lindland, executive analyst at Kelley Blue Book, said in an email.

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