Tesla's Stock Gets ROCKED After Consumer Reports WITHDRAWS Its Strong Recommendation For The Model S — Who's Gonna Get Hurt WORSE? CR? TSLA?

Yesterday was one of those days that doesn't come around too often.

It wasn't too long ago that Consumer Reports was bestowing the Tesla Model S with a significant accolade. According to the storied publication, the Model S was the best performing vehicle it had ever tested. Essentially, it broke CR's evaluation with a perfect score. No one even knew that was possible.

Yesterday though shareholders of TSLA were rocked by news and a following slide in the equity. Consumer Reports actually withdrew its recommendation of the Model S due to "worse than average" reliability. This is due to an all-new report that predicts reliability of new vehicles, which is conducted by CR. During yesterday's trading session shares of TSLA gave back nearly 10 percent, but recovered into the close.

This leaves me wondering two things:

1) How the hell can Consumer Reports say the Model S is the best thing since sliced bread and then go take a crap on it?

2) Will Tesla or Consumer Reports get hurt MORE by this revelation?

What say you, Spies?

In late August, a report out of Consumer Reports said that the Tesla Model S P85D, an all-wheel-drive electric sedan that also happens to be the most expensive model of the car, performed “better in our tests than any other car ever has, earning a perfect road-test score.”

We said at the time that the review was something you don’t see every day. But more shockingly, Consumer Reports has just assigned Tesla’s Model S a “worse-than-average” rating in a new, annual report about the predicted reliability of new vehicles...

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cidflekken - 10/21/2015 1:19:17 AM

+8 Boost

If it sounds too good to be true.....

runninglogan1 - 10/21/2015 2:27:30 AM

-4 Boost

97% of owners would still buy another Tesla...

MDarringer - 10/21/2015 8:38:03 AM

+2 Boost

Because the 97% are in the "emperor's new clothes" dilemma. The Model S hasn't been around long enough to prove it is a quality design and time will tell that story. They probably don't want to look stupid for buying an unproven car.

runninglogan1 - 10/21/2015 11:08:49 AM

-3 Boost

Wrong. They would buy another because it's an extraordinary car and Tesla service has proven exemplary.

USNA1999 - 10/21/2015 5:57:24 AM

+2 Boost

Personally, I have never purchased a car based on CR. As we have seen and based on sales volume this rankings don't mean much.

jameswisrik - 10/21/2015 6:51:13 AM

+4 Boost

Tesla...its a big AUTO ponzi scheme. Its called FAKE IT TO YOU MAKE IT...for most..making it will never happen when you fake it.

CR doesn't take ad money...trusted by many SMART shoppers!

TomM - 10/21/2015 7:18:24 AM

+1 Boost

CR - in the past - tested the car's performance itself - but it did not have enough feedback from owners to gauge reliability. Tesla sells very few cars - and few are out of warranty yet. So - while the car itself performs well - and that they did not change in their report - problems with service and reliability finally came in - and it is no surprise that a car with that much new technology has problems - virtually all cars that have major new technology have growing pains. ANd remember - when a car does need service - the ability to easily get service is only how close you are to a Tesla service agency. People may not have to pay for a tow NOW - but wait until that 300 mile tow is your responsibility.

97% of Tesla owners would buy another Tesla because it currently has no competition - so that is not a true indication - wait until there are multiple choices - and see if that continues. Tesla is one of the current "IT" cars. However - when another company produces a long range electric luxury car - Tesla might loose that position. Remember again - so far - Tesla has sold very few cars - and has made NO profits in making them.

TauronB2G - 10/21/2015 7:18:54 AM

-1 Boost

They took a stock hit yesterday. It's time to call my broker. I'm buying TSLA . CR does not impact my busing decisions. People who own them love them and there are lots of people who really want one. They will be alright.
T

mre30 - 10/21/2015 11:09:55 AM

+1 Boost

Here come Tesla's four horsemen of the apocalypse....

The "conquest" horseman was driving in a Tesla but he just broke down and cannot exit his car because the doors won't open.

The "war" horseman is Elon Musk who is on foot, walking towards the podium at CNBC to insist that things at Tesla are still fantastic.

The "famine" horseman is indeed riding on a horse as its the only way she can get out of Tesla headquarters in a reliable mode of transport so she can get to Google headquarters on time for her job interview, and

The "death" horseman is standing next to his horse starting at his smartphone trying to figure out how to pay off the margin loan secured by Tesla shares.

All four horsemen are being circled by two solitary falcons.

supermoto - 10/21/2015 12:00:53 PM

+9 Boost

A $130k Tesla has nowhere near the quality of a $130k S-Claass.

3-month wait to fix a passenger side stuck door handle - so the passenger can only get in by entering the driver's side and sliding across the seats? Ridiculous and unacceptable.

MrEE - 10/21/2015 6:50:28 PM

+1 Boost

Da, road test, reliability, and owner satisfaction are all independent ratings.

Vette71 - 10/21/2015 8:37:50 PM

+1 Boost

The wealthy top 1% (maybe top 5%) who currently own Teslas are unlikely to rely on CR in making their vehicle decisions. Reliability is less of an issue for folks with multi-vehicle fleets, unless both their Tesla and the Range Rover crap out at the same time. CR doesn't get hurt. Tesla on the other hand gets hurt by stock price drops as it has to constantly sell more stock, without significantly diluting current shareholders, to raise the cash it needs to exist. Once Tesla comes out with more main market products, a poor reliability record will hurt sales there a a time when it will have competition.

MrEE - 10/23/2015 7:14:17 PM

+1 Boost

CR ratings come from their subscribers, so enough Tesla owners value CR ratings. The wealthy are likely less tolerant in dealing with annoying trips back to the dealership to fix problems even under warranty.