Tesla's stock fell after a report from Consumer Reports points out problems with the pricey but popular Model S electric car. Bobbi Rebell reports.
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Tesla's youthful glow, a little dimmer as it ages, after Consumer Reports gave its Model S a surprisingly critical review. A shocking change from a year ago, when it got one of the best ratings ever given to a car, 99 out of a possible 100.
They bought the electric car to test- and a year later problems are cropping up.
They include smaller issues like problems with the automatic retracting door handles, and bigger issues like the center screen going blank.
Consumer Reports Program Manager and Sr. Engineer Gabe Shenhar wrote the report:
SOUNDBITE: GABE SHENHAR, PROGRAM MANAGER AND SENIOR ENGINEER, CONSUMER REPORTS (ENGLISH) SAYING:
"The dead screen that required a trip to the service center and required parts sent. There were a couple of other things like a broken charging adapter for non-Tesla chargers and the front trunk refused to pop open at some point. There were a few other bits that Tesla decided on its own to change for us. So all in all I wouldn't say this is, this is a bad experience. But it just that, you know this is a pretty fairly long list of glitches for a car that new."
REPORTER BRIDGE: BOBBI REBELL, REUTERS CORRESPONDENT (ENGLISH) SAYING:
And a car this expensive. Telsa models start at $70,000. The one tested by Consumer Reports was almost $90,000.
Tesla stock, which had soared almost 75 percent over the last year- hit a speedbump on the news.
But S&P Capital IQ's Efraim Levy is still a fan.
SOUNDBITE: EFRAIM LEVY, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING:
"I really think this is a company that is different from other companies. It's still entrepreneurial. And it's still very responsive because kind of you want to compare it to Apple. It's only has a few products to focus on so it makes sure it does those well and fixes them in a timely- it's not like a General Motors or a Ford where they have a whole product line and they divide their attention."
He's more concerned about other issues- not the least of which is that the stock is, in his opinion, fairly valued.
Tesla said in a statement, service is a top priority, saying "We are constantly upgrading the functionality, features and quality of every Model S through the free over the air updates we provide to every owner."
Tesla fixed all the issues with Consumer Reports Model S- which was under warranty.
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