model x doors shot

Tesla’s stock price ($TSLA) surprisingly tumbled following a new report from the review magazine Consumer Reports highlighting some quality issues with early Model X units. The stock fell over 4% after the report was published this morning, but gained in the afternoon and it is now down only 2%.

I say the tumble is surprising due to the report hardly containing any new information. The magazine cites one particular case of a Model X owner having some issues needing a few service center visits and then add some data point by also citing “message boards” complaints about the vehicle.

Quality issues with Tesla’s early production models have been reported and acknowledged by Tesla in recent past. Here’s our article on it from last month:

Following Consumer Reports’ comments, a Tesla spokesperson issued a statement:

“We are committed to making the world’s most reliable cars. While we have seen some issues with early Model X builds, the issues are not widespread, and we are working closely with each owner to respond quickly and proactively to address any problems. We will continue to do so until each customer is fully satisfied. This commitment is one of the reasons why 98 percent of our customers say they will buy another Tesla as their next car.”

Earlier this month, Tesla confirmed it delivered 2,400 Model X SUVs during the past 3 months and that it recently managed to ramp up production to 750 units per week following the quality issues and supplier parts shortages. The company expects to be at full production capacity of about 1,000 units per week by the end of the quarter.

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Fred Lambert

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