Tesla Motors saw its share price plunge more than 10 per cent yesterday after Consumer Reports withdrew its recommendation for the firm’s Model S electric sedan.
It’s NASDAQ price plummeted from its opening price of 228.10 to 203.57 two hours after the news was released, although it rose again to 213.03 during the afternoon meaning it was down 6.6 per cent for the day by close of play.
The fall came after Consumer Reports released its 2015 Annual Auto Reliability Survey, which showed a host of “detailed and complicated” problems experienced by customers.
The main culprits were the drivetrain, body and sunroof squeaks, rattles and leaks, and issues with the center console, power and charging equipment.
The withdrawal of CR’s recommendation comes just eight weeks after Tesla’s top-of-the-line and new for 2015 Model S P85 got such high results in the nonprofit’s tests that the car broke their rating system.
Our own compilation of 2015 Tesla Model S reviews shows that it has been the highest rated automobile in the US by reviewers in the US this year.
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Consumer Reports said that while the Model S did extremely well in its 50-plus performance tests, “its predicted reliability is another matter”.
CR received about 1,400 survey responses from Model S owners who chronicled an array of detailed and complicated maladies. From that data, the Tesla Model S earns a worse-than-average predicted reliability score. That’s a step down from last year’s “average” prediction for the Model S. It also means the Model S does not receive Consumer Reports’ recommended designation.
They said some of the reliability areas scored worse on the 2015 model than they did on the previous year’s 2014 model. They also noted that the number of complaints about the drivetrain have increased as the car has got older.
To receive Consumer Reports’ recommendation cars have to have average or better predicted reliability on top of performing well in its tests.