February 22, 2019 – Earlier this Thursday the vehicle Tesla Model 3, got stripped of consumer report’s recommendation. As the non-profit consumer advocacy group has removed its recommendation based on customer reliability surveys. This has caused a drop in Tesla’s Shares and vehicle’s price. However, Tesla wasn’t the only vehicle given a bad review by consumer recommendation, others include companies such as BMW, Dodge, Acura, and Volkswagen.
Owners of Tesla vehicles and car enthusiasts have a split opinion regarding the matter. This isn’t the first time Tesla got stripped of their recommendation from Consumer Report.
The main reason why Tesla Model 3 has been stripped of consumer recommendation is due to its reliability issues. The model has received a large number of complaints regarding the electric vehicle’s reliability. The major issue is electronics, but there are other defects and problems as well. These problems include paint quality, faulty infotainment displays, and glass defects.
Though prior reviews regarding the vehicle were perfect and named one of the most satisfying cars to own. The recent recommendation stripped has affected Tesla model 3 shares and its sales.
In response to the issue, Tesla spokesperson told consumer reports that “the vast majority of issues have already been corrected through design and manufacturing improvements, and that Tesla is already significantly implementing improvements”.
Tesla Shares Drop and Tesla Model 3 Price Cut
Tesla shares fell by 2% after the recommendation of consumer reports got removed from the vehicle, this raised questions regarding the reliability of the electric car. Though Tesla stated that they have implemented improvements, this drop in shares has affected Tesla and the vehicle’s price and marketability.
After reports have spread that Tesla Model 3’s recommendation got removed by Consumer Report, the price of the vehicle has been reduced yet again. From $45,000 to $42,900. This has been the second time that the vehicle’s price has reduced. Reliability issues are a large factor that can undermine a product’s price.