Tesla shares slump after Consumer Reports cites owner-reported problems

A year after recommending the car as one of the best it has ever reviewed, Consumer Reports said it would no longer recommend Tesla's Model S sedan because owners reported a variety of problems with the vehicle.

The news sent shares in Tesla slumping down more than seven per cent. The magazine reported that owners of the all-electric sedan released in the summer of 2012 wrote in about "an array of detailed and complicated maladies" with the car.

The survey in December's issue, released Tuesday, predicts the reliability of 2016 cars and trucks based on a survey of its subscribers. This year's survey was based on responses from owners of 740,000 vehicles. 

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Owners of Tesla cars reported sunroof leaks and problems with the electric motor and the dashboard screen, among other issues.

Consumer Reports' initial review of the Model S gave the car a score of 103 out of its 100-point scale because of its driving performance, luxury features, and innovation in energy efficiency.

Technically, Tesla isn't ranked as an automaker by the magazine alongside 28 other companies because it only has one basic version, the Model S, to review, and the magazine requires a company to make at least two different types of car before it is considered an automaker.

An SUV known has the Model X has since been released, to mixed reviews, but not in time to be included in the rankings.

Still, Consumer Reports decided to include Tesla in its automaker ranking after hearing from 1,400 Model S owners about their driving experiences. And regardless of the reports of issues, 97 per cent of Tesla drivers surveyed said they would definitely purchase the car again.

Tesla was eager to stress how satisfied its customers are, and said any issues will be quickly addressed. "Consumer Reports also found that customers rate Tesla service and loyalty as the best in the world," Tesla said in a statement Tuesday. "Close communication with our customers enables Tesla to receive input, proactively address issues and quickly fix problems. Over-the-air software updates allow Tesla to diagnose and fix most bugs without the need to come in for service. In instances when hardware needs to be fixed, we strive to make it painless."

Other companies ranked

Other companies that scored well on the magazine's rankings include Lexus and Toyota, who received top marks for overall owner satisfaction and reliability. Audi, Mazda and Subaru rounded out the top five. The worst performers were Infiniti, Cadillac, Ram, Jeep and Fiat.

Ford was the survey's biggest gainer this year. General Motors Co. had a mixed record. Its Buick brand is among the most reliable, but Cadillac fell seven spots to 25th because of problems with its dashboard infotainment system.