Two months after the influential Consumer Reports called Tesla's Model S the best-performing car ever, it pulled back slightly Tuesday, saying the luxury electric has more than average repair issues.
The independent consumer review group said a survey including about 1,400 Model S owners "chronicled an array of detailed and complicated maladies" in the Model S, involving the drivetrain, power equipment, climate control, charging equipment, and the tablet-like computer screen in the dashboard.
Owners also complained of "body and sunroof squeaks, rattles, and leaks," it said.
Tesla's shares quickly sank 11 percent to around $202 after Consumer Reports released its report, concluding that Teslas are likely to have a greater-than-average number of problems, with the 2015 model more afflicted than the 2014.
But the shares recovered half that to finish the day off 6.6 percent at $213.03.
Consumer Reports noted that the problems are almost all covered by the car's warranty, and it stood by its August declaration that, on drivability, comfort and performance, the $125,000 Model S P85D version "performed better in our tests than any other car ever has."
"With a six-figure price tag, the P85D is expensive, meaning its virtues will be experienced by a rare few. But its significance as a breakthrough model that is pushing the boundaries of both performance and fuel-efficiency is dramatic," Consumer Reports said at the time.
Tesla's all-electric cars have ridden a wave of enthusiasm since hitting the market three years ago, each year topping Consumer Reports's annual car recommendations.
So the report Tuesday clearly disappointed investors confident in the future of the still money-losing company.
At the end of September Tesla unveiled its next car, two years later than expected. The Model X sports utility vehicle has already attracted thousands of pre-orders, even at a steep $130,000 price.
Trip Chowdhry, analyst at Global Securities, defended the company's strong outlook while not disputing Consumer Reports's conclusions.
"Customers buy Tesla knowing well that fit-and-finish is sub-par," he said. Yet owners still rave about their cars, he said.
"Tesla sales occur because of word-of-mouth from current Tesla owners, and not because of Consumer Reports or other reviewers," he said.
Source: AFP
GMT 15:07 2018 Thursday ,18 January
General Motors continues to lead the discussion on smart, cleanGMT 13:18 2018 Tuesday ,16 January
Emirates Auction launches the first online auctionGMT 10:00 2018 Tuesday ,16 January
Volkswagen reports record global car salesGMT 09:54 2018 Friday ,12 January
Pickups, SUVs in spotlight at 2018 Detroit auto showGMT 11:13 2018 Wednesday ,10 January
France to cut highway speed limitsGMT 07:44 2018 Friday ,05 January
Last year's German car sales highest since 2010GMT 08:56 2017 Monday ,11 December
Bentley Continental GT makes Middle East debutGMT 08:42 2017 Sunday ,10 December
Galadari Trucks and Heavy Equipment,Komatsu joinMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor