Tesla shares fell after a new report, based in part on the reviews of thousands of vehicle owners, raises questions about the reliability of the electric car maker's Model 3. Consumer Reports says it will no longer recommend the Model 3 due to the reliability issues.
"When we look at the Model 3 a lot of the issues are the electronics," said Jake Fisher, senior director of automotive testing at Consumer Reports. "There are some issues replacing the (navigation/infotainment) screens, for instance, but we've seen other issues in terms of the trim breaking and the glass."
Tesla shares were down nearly 2 percent after the report was released Thursday.
Consumer Reports' recommendation of particular models is based on several factors, including the feedback of vehicle owners, crash test performance, and the testing and reviews conducted by the Consumer Reports auto team. While it reached its conclusion after reading reports of Tesla owners complaining about the fit and finish of their vehicles, Fisher points out that the Model 3 owned and tested by Consumer Reports had a rear window with a small stress fracture.
This report confirms the concerns many analysts have raised about the quality of Tesla models slipping as the automaker ramped up production last year. As Tesla CEO Elon Musk pushed his team to meet ambitious Model 3 production targets, he repeatedly said Tesla was in the midst of "production hell."