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Consumer Reports Retracts Tesla Model S Reliability Rating

Consumer Reports has downgraded Tesla Model S reliability to “worse than average.” As a result, it no longer recommends the Model S to car buyers.

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Consumer Reports (CR) has downgraded its estimate of Tesla Model S reliability to “worse than average”. In its annual survey of vehicle owners, CR received feedback from 1,400 Model S owners, “who chronicled an array of detailed and complicated maladies” with the drivetrain, power equipment, charging equipment and 17″ touchscreen center console.

Among the issues being surfaced are complaints around body and sunroof squeaks, as well as rattles and leaks, according to Jake Fisher, CR’s director of automotive testing. “As the older vehicles are getting up on miles, we are seeing some [Model S] where the electric motor needs to be replaced and the onboard charging system won’t charge the battery,” Fisher said.  “On the newer vehicles, we are seeing problems such as the sunroof not operating properly. Door handles continue to be an issue.”

As a result of the reported reliability issues, the Tesla Model S is no longer recommended by Consumer Reports.

Why are a few malfunctioning door handles such a big deal? Some people are concerned that if Tesla can’t get them to work right, how in the world will it keep the complex falcon wing doors on the Model X functioning properly as the years and miles go by?

Tesla is now on the cusp of bringing forth the long awaited Model 3, the lower priced car that is supposed to begin fulfilling Elon Musk’s dream of creating a mass market electric vehicle. Factor in delivery delays plaguing the Model X, quality issues that Consumer Reports has uncovered, and the prospect that the Model 3 will be late to market, the way the Model S and Model X were before it, and some people worry that the company has written checks it can’t cash.

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The news from Consumer Reports sent Tesla stock into a tailspin on Wall Street Tuesday slipping as much as 10% during the trading day, before rebounding to finish off down 7% at $213.03.

Emmanuel Rosner, autos analyst at CLSA Americas, an international investment firm, told the Los Angeles Times, “We have already seen consistent product delays, and now there are quality issues. Investors are betting on the Model 3 being a mass-market car, but having low-quality marks is a real knock if you are going to put out a volume car,” Rosner said. “Tesla has to get its quality issue in order.”

Tesla spokesman Ricardo Reyes responded that the company keeps in close communication with its customers to “proactively address issues and quickly fix problems.” He noted that over-the-air software updates allow Tesla to diagnose and fix most problems without the cars needing to come in for service.

“In instances when hardware needs to be fixed, we strive to make it painless,” said Reyes, who went on to point out that, “Consumer Reports also found that customers rate Tesla service as the best in the world.”

But will that remain true the day we see a half million or more Tesla automobiles on the road? That’s a question that has a lot of people concerned and one that only time can answer.

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"I write about technology and the coming zero emissions revolution."

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Tesla Europe rolls out FSD ride-alongs in the Netherlands’ holiday campaign

The festive event series comes amid Tesla’s ongoing push for regulatory approval of FSD across Europe.

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Credit: Tesla

Tesla Europe has announced that its “Future Holidays” campaign will feature Full Self-Driving (Supervised) ride-along experiences in the Netherlands. 

The festive event series comes amid Tesla’s ongoing push for regulatory approval of FSD across Europe.

The Holiday program was announced by Tesla Europe & Middle East in a post on X. “Come get in the spirit with us. Featuring Caraoke, FSD Supervised ride-along experiences, holiday light shows with our S3XY lineup & more,” the company wrote in its post on X.

Per the program’s official website, fun activities will include Caraoke sessions and light shows with the S3XY vehicle lineup. It appears that Optimus will also be making an appearance at the events. Tesla even noted that the humanoid robot will be in “full party spirit,” so things might indeed be quite fun. 

“This season, we’re introducing you to the fun of the future. Register for our holiday events to meet our robots, see if you can spot the Bot to win prizes, and check out our selection of exclusive merchandise and limited-edition gifts. Discover Tesla activities near you and discover what makes the future so festive,” Tesla wrote on its official website. 

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This announcement aligns with Tesla’s accelerating FSD efforts in Europe, where supervised ride-alongs could help demonstrate the tech to regulators and customers. The Netherlands, with its urban traffic and progressive EV policies, could serve as an ideal and valuable testing ground for FSD.

Tesla is currently hard at work pushing for the rollout of FSD to several European countries. Tesla has received approval to operate 19 FSD test vehicles on Spain’s roads, though this number could increase as the program develops. As per the Dirección General de Tráfico (DGT), Tesla would be able to operate its FSD fleet on any national route across Spain. Recent job openings also hint at Tesla starting FSD tests in Austria. Apart from this, the company is also holding FSD demonstrations in Germany, France, and Italy.

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Tesla sees sharp November rebound in China as Model Y demand surges

New data from the China Passenger Car Association (CPCA) shows a 9.95% year-on-year increase and a 40.98% jump month-over-month.

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Credit: Tesla China

Tesla’s sales momentum in China strengthened in November, with wholesale volumes rising to 86,700 units, reversing a slowdown seen in October. 

New data from the China Passenger Car Association (CPCA) shows a 9.95% year-on-year increase and a 40.98% jump month-over-month. This was partly driven by tightened delivery windows, targeted marketing, and buyers moving to secure vehicles before changes to national purchase tax incentives take effect.

Tesla’s November rebound coincided with a noticeable spike in Model Y interest across China. Delivery wait times extended multiple times over the month, jumping from an initial 2–5 weeks to estimated handovers in January and February 2026 for most five-seat variants. Only the six-seat Model Y L kept its 4–8 week estimated delivery timeframe.

The company amplified these delivery updates across its Chinese social media channels, urging buyers to lock in orders early to secure 2025 delivery slots and preserve eligibility for current purchase tax incentives, as noted in a CNEV Post report. Tesla also highlighted that new inventory-built Model Y units were available for customers seeking guaranteed handovers before December 31.

This combination of urgency marketing and genuine supply-demand pressure seemed to have helped boost November’s volumes, stabilizing what had been a year marked by several months of year-over-year declines.

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For the January–November period, Tesla China recorded 754,561 wholesale units, an 8.30% decline compared to the same period last year. The company’s Shanghai Gigafactory continues to operate as both a domestic production base and a major global export hub, building the Model 3 and Model Y for markets across Asia, Europe, and the Middle East, among other territories.

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Investor's Corner

Tesla bear gets blunt with beliefs over company valuation

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Credit: Tesla

Tesla bear Michael Burry got blunt with his beliefs over the company’s valuation, which he called “ridiculously overvalued” in a newsletter to subscribers this past weekend.

“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry, who was the inspiration for the movie The Big Shortand was portrayed by Christian Bale.

Burry went on to say, “As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up.”

Tesla bear Michael Burry ditches bet against $TSLA, says ‘media inflated’ the situation

For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry’s short position extended to other supporters of the company, including ARK Invest.

Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized.

While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech.

Burry’s Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results, as shares have increased in value since 2020 by over 115 percent. The firm closed in May.

In 2020, it launched its short position, but by October 2021, it had ditched that position.

Tesla has had a tumultuous year on Wall Street, dipping significantly to around the $220 mark at one point. However, it rebounded significantly in September, climbing back up to the $400 region, as it currently trades at around $430.

It closed at $430.14 on Monday.

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