Tesla Stock Tanks on Consumer Reports’ Reliability Forecast

New all-wheel-drive versions of the Tesla Model S car are lined up for test drives in Hawthorne, California October 9, 2014. Tesla Motors Inc on Thursday took its first step toward automated driving, unveiling features that will allow its electric sedan to park itself and sense dangerous situations. The company also said it will roll out an all-wheel drive option of the Model S sedan that can go from zero to 60 miles per hour in 3.2 seconds yet doesn't compromise the vehicle's efficiency. CEO Elon Musk said "D" stands for "dual motor," meaning Tesla's all-wheel drive vehicle will have a motor at either end of the chassis to increase control. REUTERS/Lucy Nicholson
© Lucy Nicholson/Reuters

Tesla Motors shares slid 10% in midday trading after Consumer Reportsmagazine rated its Model S “worse than average” for predicted reliability.

The knock on Tesla’s reputation comes despite Tesla’s glowing reviews for two versions of the Model S that it has bought for testing. Most recently, the magazine called the performance version the best car it has ever tested.

But predicted reliability is a new sore spot for the electric car. The magazine says the 1,400 owners who answered their annual predicted reliability survey complained about problems related to drivetrain, power equipment, charging equipment, center console, and body and sunroof squeaks, rattles, and leaks.

On the basis of all those issues comes the magazine’s worst predicted reliability rating.

Investors reacted by dropping the stock 10.3% at midday to $204.58, down $23.52.

Consumer Reports‘ ratings are among the most closely watched in the auto industry because of its reputation for independence. It says the 2015 Annual Auto Reliability Survey takes into account data from more than 740,000 vehicles.

Written by Chris Woodyard of USA Today

(Source: USA Today)

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