Tesla shares dive after Consumer Reports yanks recommendation for Model S

> The Tesla wasn’t the only high-performance vehicle that fell below average in reliability. Others include the BMW X5 and 5 Series, and the Chevrolet Corvette.

> When automakers roll out new technology, be it infotainment, transmissions, or engine variations, it often has a deleterious effect on vehicle reliability. Tesla is not only the poster child for a new type of high-performance, high-mileage EV, but it also has been adding complex new variations as assembly-line updates, such as all-wheel drive this year. So it’s not surprising to see problems continue to crop up.

> Despite the problems, our data show that Tesla owner satisfaction is still very high: Ninety-seven percent of owners said they would definitely buy their car again. It appears that Tesla has been responsive to replacing faulty motors, differentials, brakes, and infotainment systems, all with a minimum of fuss to owners.

The CR article is here: http://www.consumerreports.org/cars/tesla-reliability-doesnt...

It's not easy to accidentally slip on a banana peel and buy a Tesla, so I think most owners would understand the risks of buying a brand-new car company's product loaded with brand-new tech. For some that's part of the appeal. I suspect the market is over-reacting a little.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#7

Post by outworlder » Tue, Oct 20, 2015, 7:13 PM UTC

That is kinda expected. This is a new company after all, with new technology.

What I didn't see in the article was: how are they handling the failures?

It is one thing to have a car that's unreliable, but that you can then take to a dealer and get it back a couple of days after with everything fixed. It is another if you have to fight the company every step of the way to get it fixed or, even worse, pay for their mistakes out of your own pocket.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#8

Post by late2part » Tue, Oct 20, 2015, 7:13 PM UTC

On the one hand, they're a new company relative to the others; they are taking many risks, and they won't perform flawlessly - so I give them a lot of slack for trying and mostly succeeding.

Also, they are very good at fixing things when they screw up.

On the other hand, their stock price is WAY over valued. Hopefully we will get gentle ratchets to bring it back down to earth, such as this.

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#9

Post by skorecky » Tue, Oct 20, 2015, 7:14 PM UTC

outworlder wrote: post #7

That is kinda expected. This is a new company after all, with new technology. What I didn't see in the article was: how are they handling the failures? It is one thing to have a car that's unreliable, but that you can then take to a dealer and get it back a couple of days after with everything fixed. It is another if you have to fight the company every step of the way to get it fixed or, even worse, pay for their mis…

They address this in the article.

> Tesla spokesman Ricardo Reyes said the Palo Alto automaker keeps in close communication with its customers to “proactively address issues, and quickly fix problems.”

Re: Tesla shares dive after Consumer Reports yanks recommendation for Model S

#10

Post by [deleted] » Tue, Oct 20, 2015, 7:15 PM UTC

[deleted]