Friday, February 22, 2019

Tesla's Model 3 loses reliability rating

Tesla's stock sank nearly 4 percent on Thursday after Consumer Reports said it was pulling its recommendation of the company's Model 3 due to declining reliability.

The consumer watchdog organization, which just released its 10 best cars, SUVs and pickups, said it can no longer recommend the Tesla Model 3 electric sedan after noticing substantive manufacturing defects, including "loose body trim" and "glass defects," such as windows cracking too easily.

Tesla CEO Elon Musk has argued that the company is repeatedly improving the Model 3 through manufacturing changes and software upgrades. But the company's aggressive move to accelerate the pace of production in 2018 may have caused some issues, according to Jake Fisher, senior director of auto testing for Consumer Reports.

Yet "people who have told us they have problems with the car have also told us they're very satisfied with the car," Fisher said.

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That reflects the popularity of the Tesla brand and its position as a status symbol for many buyers, he said.

"You may not be buying a Tesla Model 3 because you want the most reliable car," Fisher said.

As a brand, Tesla ranked 19th, just behind Buick and just ahead of Ford on Consumer Report's annual list of best new vehicles. Subaru ranked first overall among 33 brands, followed by four luxury brands: Genesis, Porsche, Audi and Lexus.

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SUBCOMPACT CAR: Toyota YarisSUBCOMPACT CAR: Toyota Yaris ToyotaFullscreenHYBRID/ELECTRIC CAR: Toyota PriusHYBRID/ELECTRIC CAR: Toyota Prius Frederic J. Brown, AFP/Getty ImagesFullscreenFULL-SIZED PICKUP TRUCK: Ford F-150FULL-SIZED PICKUP TRUCK: Ford F-150 Gene J. Puskar, APFullscreenMIDSIZED CAR: Toyota Camry HybridMIDSIZED CAR: Toyota Camry Hybrid Ian Langsdon, EPA-EFEFullscreenCOMPACT LUXURY CAR: Audi A4COMPACT LUXURY CAR: Audi A4 Jim Fets, AudiFullscreenLARGE CAR: Toyota Avalon HybridLARGE CAR: Toyota Avalon Hybrid Ryan Garza, Detroit Free Press-USA TODAY NetworkFullscreenLUXURY SUV: BMW X5LUXURY SUV: BMW X5 Robert Hanashiro, USA TODAYFullscreenSUBCOMPACT SUV: Hyundai KonaSUBCOMPACT SUV: Hyundai Kona Romain Blanquart, Detroit Free Press-USA TODAY NetworkFullscreenCOMPACT SUV: Subaru ForesterCOMPACT SUV: Subaru Forester Danielle Parhizkaran, for USA TODAYFullscreenMIDSIZED SUV: Subaru AscentMIDSIZED SUV: Subaru Ascent Mark Phelan, Detroit Free PressFullscreenInterested in this topic? You may also want to view these photo galleries:ReplaySUBCOMPACT CAR: Toyota Yaris1 of 10HYBRID/ELECTRIC CAR: Toyota Prius2 of 10FULL-SIZED PICKUP TRUCK: Ford F-1503 of 10MIDSIZED CAR: Toyota Camry Hybrid4 of 10COMPACT LUXURY CAR: Audi A45 of 10LARGE CAR: Toyota Avalon Hybrid6 of 10LUXURY SUV: BMW X57 of 10SUBCOMPACT SUV: Hyundai Kona8 of 10COMPACT SUV: Subaru Forester9 of 10MIDSIZED SUV: Subaru Ascent10 of 10AutoplayShow ThumbnailsShow CaptionsLast SlideNext Slide

Tesla said in a statement that its cars are "the safest and best performing vehicles available today."

"We're setting an extremely high bar for Model 3. We have already made significant improvements to correct any issues that Model 3 customers may have experienced that are referenced in this report, and our return policy allows any customer who is unhappy with their car to return it for a full refund," the company said.

Tesla's stock fell 3.7 percent to $291.23, the lowest close since Jan. 23, according to Bloomberg. 

Follow Dalvin Brown on Twitter: @Dalvin_Brown

 

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