Tesla Shares Fall as Consumer Reports Stops Recommending the Model 3

Shares of electric vehicle maker Tesla were falling on Thursday after Wall Street learned that Consumer Reports is pulling its recommendation of the company’s Model 3.

Consumer Reports has cited reliability issues with the car which prompted it to halt its recommendation. According to the American magazine, many customers had reported problems with the Model 3.

“Consumers expect their cars to last — and not be in the repair shop. That’s why reliability is so important,” said Jake Fisher, the senior director of automotive testing at Consumer Reports.

“While most Tesla Model 3 owners are very happy with their cars, they’re also having problems with them,” Fisher said.

“All three Tesla models have below-average reliability, and we don’t recommend any of them,” he added.

According to Tesla however, it had corrected many of the problems found in the magazine’s survey.

“We take feedback from our customers very seriously and quickly implement improvements any time we hear about issues,” said Tesla.

The electric vehicle maker said that the survey was conducted from July through September, “so the vast majority of these issues have already been corrected through design and manufacturing improvements, and we are already seeing a significant improvement in our field data.”

In other news Tesla announced on Friday at an event in Beijing that it’s beginning delivery of the Model 3 in China, at least a week earlier than expected.

Previously Tesla said it planned to start deliveries in March.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) and have not been compensated for this article.