Tesla shares dive after Consumer Reports yanks recommendation for Model S

LA Times ^ | 10-20-15 | Jerry Hirsch

[dynachrome]

Consumer Reports withdrew its recommendation for the Tesla Model S — a car the magazine previously raved about — because of poor reliability for the sporty electric sedan.

The turnabout comes after the influential consumer magazine handed the luxury car a “worse-than-average” rating in its annual report on the predicted reliability of new vehicles issued Tuesday.

The news sent Tesla Motors stock down as much as $23.77, more than 10%, to $204.33 in mid-day trading.

See the most-read stories this hour >> Consumer Reports surveyed 1,400 Model S owners “who chronicled an array of detailed and complicated maladies” with the drivetrain, power equipment, charging equipment and giant iPad-like center console. They also complained about body and sunroof squeaks, rattles and leaks.

“As the older vehicles are getting up on miles, we are seeing some where the electric motor needs to be replaced and the onboard charging system won’t charge the battery,” said Jake Fisher, Consumer Reports’ director of automotive testing. “On the newer vehicles, we are seeing problems such as the sunroof not operating properly. Door handles continue to be an issue.”

[Kommodor]

I’d drive that...

(too bad I can’t afford it)

[sparklite2]

Actually, is that about the average price for a new car today?

[donaldo]

I prefer the Bailey Electric with Edison’s Battery:

http://www.electricauto.org/resource/resmgr/history/edison2.jpg

[BatGuano]

Very foolish to buy a car that can only drive 285 miles before an 8 hour charge. It is beautiful to look at, sit in and dream but a turn off because of price and range.
I visited a dealership in a fancy mall in Scottsdale, AZ in 2013 and they had a chassis on four wheels with just the battery and motors installed. The battery weighs 1600 pounds and extends from bumper to bumper. It is about 4 inches in thickness and almost covers the floor for the width of the car.
Their best features are no gas, no oil and no grease.

Don't count them out because with taxpayer paid government subsidies they will be around for a long time. Maybe longer than Solyndra.

[hal ogen]

The “average” person buys a cheapo small new car at around $15K. Not everyone has $$$$$$ in today’s nobama-ecomomy.

[markman46]

beautiful car but 125k is to rich for me, maybe when then new one comes out in a yr for 30-4ok I'll think about it

[sparklite2]

. Here's how much Interest.com says the average-earning car buyer can afford to spend on a new car in seven major metro areas:

- New York City: $21,907 affordable purchase price/$441 maximum monthly payment

- Los Angeles: $20,637 affordable purchase price/$416 maximum monthly payment

- Chicago: $21,409 affordable purchase price/$434 maximum monthly payment

- San Francisco: $28,009 affordable purchase price/$563 maximum monthly payment

- Boston: $26,669 affordable purchase price/$520 maximum monthly payment

- Houston: $20,271 affordable purchase price/$396 maximum monthly payment

- Atlanta: $20,000 affordable purchase price/$393 maximum monthly payment

As you can see, the Interest.com numbers are well below the average purchase price of a new vehicle. This suggests that car shoppers are grossly overestimating or simply aren't informed about how much money they can really spend on their transportation.

http://www.autoblog.com/2014/03/12/who-can-afford-the-average-car-price-only-folks-in-washington/

[BRL]

The problems with electric cars have been known for 100 years. The fundamental problem remains... Energy density of a battery is awful compared to gasoline

[BatGuano]

After the “killing” you would not get too far. Maybe 300 miles and the law is on you.
The VW scandal is an example of what happens when the Gubmint sets goals so high that only a clever cheat can meet them. My son-in-law has a VW Golf diesel and expects to get money from a class action suit. He worships the environment and not God.
He said that his car, registered in Alaska driven in CA, is getting the advertised mileage but is “polluting” and this upsets him. I needle him by saying that I will win a foot race with his VW after the fix. I'm 75...

[PAR35]

Battery issues as it ages wouldn’t surprise me - in fact, it would surprise me if there weren’t any. But electric motors aren’t exactly new technology.

[PAR35]

registered in Alaska driven in CA

Turn him in. You know he deserves it.

[PIF]

Sounds expensive ...

[jjotto]

Median new vehicle price would be a more realistic number.

Almost all of the top ten best-selling vehicles can be had for thousands less than the $33K average, but only the Corolla is widely available for less than the $20-22K ‘affordability’.

[sparklite2]

The poster was more into what the average person would spend on a new car and that’s what I tried to supply.

[Patriotic1]

There are very few new cars at that price point.

[KevinB]

This is pretty interesting. CR is full of libs and will almost always rate an “environmentally friendly” product very high even if it sucks. That means Tesla must be so bad that CR believes it would be risking what is left of its reputation by giving it high marks.

[hal ogen]

“approximately”

[TalonDJ]

Exactly. Most people don’t know but electric cars were invented at the same time as gas cars. They were tried and they failed. It has taking all this time just for them to get competitive.

[TalonDJ]

If you say so. Looks ugly to me.

[hinckley buzzard]

Door handles continue to be an issue.”

Reminds me of a union-made GM car I bought in 1968. After a couple weeks the inside driver side door handle fell off.