Market Insider

Tesla drops on Consumer Reports warning

Tesla's quality control issues

Tesla shares turned lower on Tuesday after Consumer Reports released an online article saying the car maker's Model X faces quality issues.

The article highlights testimonies from Model X owners who have had a series of quality issues with the newly purchased SUVs.

A Tesla spokeswoman responded to Consumer Reports, saying "While we have seen some issues with early Model X builds, the issues are not widespread, and we are working closely with each owner to respond quickly and proactively to address any problems."

Elon Musk, chairman and chief executive officer of Tesla Motors, exits the Model X sport utility vehicle during an event in Fremont, California, Sept. 29, 2015.
Tesla recalls 2,700 Model X SUVs

The report added that such quality issues are expected from brand-new models.

This follows a negative Consumer Reports post back in October of last year, claiming the Model S has too many problems to recommend.

That prompted a response on twitter from CEO Elon Musk:


Tesla recently recalled 2,700 Model X vehicles to replace a third-row seat that failed an internal crash test.

Shares of Tesla closed down 2.5 percent, but are up more than 19 percent over the past 12 months.