Consumer Reports Drops Tesla Model S Recommendation, Tesla Stock Nosedives
Tesla Motors Inc. shares plunged more than 7% in Tuesday's session after Consumer Reports pulled its recommendation for the company's Model S electric car. While Consumer Reports gave the Tesla Model S a score of 103 out of 100 in a road test earlier this year, the company also found issues with the car over time. In a survey of 1,400 Tesla owners, Consumer Reports heard of many similar issues with the car's hardware and software over the past three model years, including display screen freezes, replacements of the cars' electric motors and sunroof leaks. "Owning a Tesla will likely mean worse-than-average reliability, a decline from last year's 'average' prediction," Jake Fisher, auto test director for Consumer Reports, said in a video packaged with its annual reliability survey. "As a result, the Model S will not receive Consumer Reports' 'Recommended" designation." Tesla shares dropped markedly just ahead of 1 p.m. Eastern time, after the report was released, falling as much as 10.4%.
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