Tesla's reliability poses a major problem for the company: Report
Tesla saw a stunning reversal after Consumer Reports removed the Tesla Model 3 from its recommended list with its stock taking a hit as a result.
The publication removed the Model 3 from its list of reliable cars, coupling this blow with the added fact that the Model X is on their list of top 10 least reliable vehicles.
This latest strike against Elon Musk’s company adds to the growing number of issues Tesla has faced over the past year including cutting its workforce by 7% to help aid in the price reduction of the Model 3.
Lauren Fix, the "Car Coach," shed some light on the impact this could have on the company.
“It was a big hit, because remember [Elon Musk] sort of lived off the fact that Consumer Reports gave Tesla all this credibility for the Model S,” she said during an interview on FOX Business' “Bulls & Bears" Thursday.
Lauren added that their struggles are mounting, "Just last year they had problem with their braking being a longer distance than what was considered acceptable by the Department of Transportation."
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But MaxFunds founder Jonas Max Ferris says we shouldn't believe the writing on the wall just yet.
“Tesla is still number one in customer satisfaction ahead of Porsche and everybody else. The cult people who are into it still like it more than any car they've ever had,” he said.
Tesla has recovered from damaging reports in the past, but it remains to be seen how they will recover from this latest blow.
A spokesperson for Tesla reached out to FOX Business saying, "Not only are our cars the safest and best performing vehicles available today, but we take feedback from our customers very seriously and quickly implement improvements any time we hear about issues. That’s just one of the reasons why, in this very same survey from Consumer Reports, Model 3 was rated as the #1 most satisfying car, and why Tesla vehicles have topped Consumer Reports’ Owner Satisfaction survey every year since 2013 – the first year Tesla was included in it.”
The spokesperson went on to say, “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. This new data from Consumer Reports comes from their annual Owner Satisfaction survey, which runs from July through September, so the vast majority of these issues have already been corrected through design and manufacturing improvements, and we are already seeing a significant improvement in our field data.”