Consumer Reports Removes Tesla Model 3 Recommendation. Will it Affect Tesla Sales?

Consumer Reports Rescinds Tesla Model 3 Recommendation

Tesla Model 3 loses Consumer Reports recommendation

The US luxury electric vehicle maker said in a statement that it held a delivery event in Beijing yesterday that "marked a significant milestone for the market".

Low scores for the Model 3 hurt the brand's overall standing, knocking it down 11 spots to No. 19 out of 33 brands in Consumer Reports' 2019 annual rankings.

Tesla stock has had a rough week.

Despite the starts and stops, Tesla reached its Model 3 production mark.

Owners of Tesla vehicles and auto enthusiasts have a split opinion regarding the matter.

Florida resident Jim Fyfe, for instance, paid a $2,500 deposit in June 2018 to order a black $70,000 Model 3.

We're setting an extremely high bar for Model 3. "I see its earlier-than-expected delivery as an effort to try and seize the market as quickly as possible", LMC Automotive analyst Alan Kang told Reuters.

Tesla publicly sparred with CR in 2017 after the magazine predicted "average reliability" for the Model 3 despite having very little survey information since the sedan had just begun shipping.

Tesla CEO Elon Musk isn't going to like this.

Tesla's stock price dropped sharply after the news was released around 9:30 a.m. PST, and was trading around $292, down 3.5 percent, by noon. China has since temporarily suspended the additional 25% tariff, reducing it to the 15% level.

Tit-for-tat tariffs between the world's two top economies have upended worldwide trade flows. After the negative report, Tesla stock fell before slightly rising in the United States stock market. Citing "reliability issues", Consumer Reports relays that it found a number of problems pertaining to hardware along with fit and finish issues. However, the automaker's new Gigafactory in Shanghai will manufacture the Model 3 and help the automaker to minimize the impact of the trade war and avoid steep tariffs.

Coinciding with the early launch of the Model 3 in China, however, Tesla got some bad news from Consumer Reports: the reputable magazine dropped the Model 3 from its top 10 recommended cars citing customer complaints about problems with some auto components including loose-fitting exterior parts and defective glass. The most recent survey came out last month.

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