USA TODAY US Edition
Survey says Tesla S unreliable
Shares fall 10% after ‘Consumer Reports’ pulls recommendation
Despite past glowing reviews, Consumer Reports magazine said Tuesday it is rating the company’s luxury electric car, the Model S, “worse than average” for predicted reliability and yanked its recommendation.
The magazine’s recommendations are considered so important for buyers of the electric car, which starts at $76,200 including delivery fees, that the stock took a hit. After falling 10%, shares recovered somewhat to close down 6.6% to $213.03.
Although the magazine in August called the performance version the best car it has ever tested, predicted reliability is a new sore spot for the electric car. The magazine says the 1,400 Tesla owners who answered its annual predicted reliability survey complained about problems related to drivetrain, power equipment, charging equipment, center console and body and sunroof squeaks, rattles and leaks.
Tesla officials noted respondents to the Consumer Reports survey lauded the automaker’s service and loyalty as the best in the world. It says it stays in close communication with customers to address issues quickly. “Overthe-air software updates allow Tesla to diagnose and fix most bugs without the need to come in for service,” it said in a statement.