Thursday, Consumer Reports pulled its recommendation for Tesla Inc.’s M-3, citing reliability problems the influential US magazine said in a statement.
The magazine’s decision to withdraw its endorsement for Tesla (NASDAQ:TSLA) M-3 less than 9 months after recommending the EV highlighted questions about quality that Tesla has faced since the vehicle’s difficult launch.
Tesla shares fell 3.4% to $292.19 in afternoon trading Thursday on the NAS.
Low scores for the M-3 hurt the brand’s overall standing, knocking it down 11 spots to #19 out of 33 brands in Consumer Reports’ 2019 annual rankings.
Millions of prospective auto buyers consult the magazine’s rankings, which are based on road testing, reliability, safety and owner satisfaction scores.
“We have already made significant improvements to correct any issues that Model 3 customers may have experienced that are referenced in this (Consumer Reports) report,” a Tesla representative said in an e-Mail to analysts “and our return policy allows any customer who is unhappy with their car to return it for a full refund.”
HeffX-LTN’s overall technical analysis for TSLA is Neutral to Bearish in here.