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CR responds to Tesla over claims that its reviews are inaccurate and misleading

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Consumer Reports has fired back at Tesla, issuing a statement that defends its recent report that predicts Model 3 to have “average reliability”.  “Tesla appears unhappy that CR expects the new-to-market Tesla Model 3 to be of average reliability, which is generally a positive projection for any first model year of a car.” says CR in a press release sent to Teslarati.

The nonprofit organization that aims to educate consumers on the value of product, that can be anywhere from a household vacuum cleaner to an automobile, through its product testing reinforces its methodology for making predictions. “Here’s how we make the prediction” notes CR, addressing Tesla’s claim that the organization’s “automotive reporting is consistently inaccurate and misleading to consumers”.

“CR uses survey data it receives from car owners to predict the expected reliability of new cars being introduced to the market by looking across a manufacturer’s historic results (akin to how a weather forecaster predicts it will be sunny) — separate from the hands-on road tests we use for our overall score.” reads the press release.

The organization provides further reasoning for the predicted reliability rating assigned to Tesla’s latest mass market vehicle. “For the Model 3, we looked at more than 2,000 consumer survey responses about Tesla models. In fact, the Tesla Model S is now reported as having above average reliability for the first time ever. The Tesla Model S is also currently CR’s top rated car, period. (Kudos on both, Tesla!)”

We’ve provided the full press release from Consumer Reports below. Let us know what your thoughts are in the comments section.

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CONSUMER REPORTS RESPONDS TO TESLA’S COMPLAINTS ON REPORTING, RESEARCH AND REVIEWS

Late yesterday, Tesla shared with select journalists what appears to have been a prepared statement of supercharged and unsupported claims about the performance and safety of their own vehicles and our 2017 Annual Reliability Survey results, taking the occasion to air a number of grievances against Consumer Reports (CR) and our overall reporting on Tesla and its products.

As is often the result of any new product or company that electrifies the market, Tesla does garner an outsized level of attention, scrutiny and discussion by the media. While we appreciate Tesla’s efforts to typically embrace and navigate, if not directly steer, this attention, we would like to offer some clarity on the examples they cite. (For other, perhaps not surprisingly Tesla-positive, examples from CR, you can visit the articles currently available at the Tesla press site, at least until they pull those links down, or visit us at CR.org).

Tesla seems to misunderstand or is conflating some of what we fundamentally do — our Annual Reliability Survey report and the related predictions versus our car reviews and tests.

First, Tesla appears unhappy that CR expects the new-to-market Tesla Model 3 to be of average reliability, which is generally a positive projection for any first model year of a car. This expectation is based on CR’s 2017 Annual Reliability Survey, measuring the dependability as opposed to the satisfaction, of more than 300 car models, model year 2000 to 2017, using the responses of individual owners of more than 640,000 vehicles. We provide this information to help people make informed purchasing decisions as new products reach the market.

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Here’s how we make the prediction: CR uses survey data it receives from car owners to predict the expected reliability of new cars being introduced to the market by looking across a manufacturer’s historic results (akin to how a weather forecaster predicts it will be sunny) — separate from the hands-on road tests we use for our overall score.

For the Model 3, we looked at more than 2,000 consumer survey responses about Tesla models. In fact, the Tesla Model S is now reported as having above average reliability for the first time ever. The Tesla Model S is also currently CR’s top rated car, period. (Kudos on both, Tesla!)

Second, Tesla has taken larger issue with how CR produces car ratings, citing specific examples where they think our testing methods fell short or were unfair. CR conducts a battery of 50 standardized tests across all the vehicles we review — we have a lot of mileage in this arena. We also continuously update our ratings as new surveys are conducted and we test the cars we purchase to reflect the current realities of what a consumer should expect in the marketplace. (That’s right, purchase. CR does not accept any advertising and purchases the products we rate like any other regular person.) The Model S rating has changed over time, going up and down, as new data becomes available.

Thanks to technological advances such as product changes delivered by an over-the-air software update and thereby adding or subtracting features, we reevaluate products to inform consumers about what to expect after any update. These changes are then reflected in our ratings. Tesla frequently updates its software in just this way, which is relatively unique in the automotive market, often resulting in material changes to its products and therefore our ratings — both positively and negatively. It also happens to drive more frequent press coverage given the need to communicate product changes to consumers.

While our reliability survey data feeds into the overall score we give any product,that is just one input. As with all the cars we review, you can rest assured that we will thoroughly test and evaluate the Model 3 with the same care and scrutiny we apply to all the cars we test just as soon as we can get one — we’re waiting patiently along with other consumers.

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As an independent, nonprofit organization that works side-by-side with consumers to create a fairer, safer, and healthier world, CR provides trusted knowledge people depend on to make better, more informed choices. We conduct evidence-based product testing and ratings, rigorous research, hard-hitting investigative journalism, public education, and steadfast advocacy on behalf of consumers’ interests. Buying a car that has an average or above average score for predicted reliability will likely reduce the chances of having problems with the car.

We at CR are confident in our data, methods, and reporting — and the historic results we’ve achieved in improving consumer products, services, and the marketplace. We will continue to report on and test Tesla’s products in the same fair-minded, consumer-focused way we do with all manufacturers, to help shape products to best serve the needs of consumers.

 

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EV tax credit rule adjustment provides short-term win, but long-term warning

There are broader implications of the credit’s new rules, which could be viewed as an “extension,” although, fundamentally, the credit could mask the true issue that many EV makers will face: generally speaking, electric cars are still too expensive.

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Credit: Tesla

The IRS adjusted the EV tax credit rule last week, which was a big win for consumers. It now allows car buyers to lock up an agreement to buy a vehicle instead of having to take delivery before the deadline of September 30.

This has tremendous advantages for both consumers and companies. For consumers, they are no longer rushed to take delivery of a car that might not be their exact pick just to qualify for the tax credit. Instead, they can build the car they want, make a marginal down payment on it, and still take delivery, even after September 30, and still get the $7,500 off.

Tesla set to win big after IRS adjusts EV tax credit rules

For carmakers, they are no longer restricted by production capacity or supply bottlenecks, and can get a vehicle to a buyer after the deadline instead of delivering bad news. The consumer just needs to commit monetarily first.

However, there are broader implications of the credit’s new rules, which could be viewed as an “extension,” although, fundamentally, the credit could mask the true issue that many EV makers will face: generally speaking, electric cars are still too expensive.

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Consumer Behavior and Market Dynamics

Everyone is expecting EV makers’ Q3 sales to be slightly higher than normal, as this is the final quarter when the $7,500 EV credit will be available. Buyers are rushing to take advantage of the credit before it expires.

The urgency of car buyers to take advantage of the credit seems to be a positive in the short term. However, there are some indications that this could lead to a “boom-and-bust” cycle, and how EVs sell in subsequent quarters could be a very disappointing reality.

If EVs were at a price point where they were more affordable and people did not need $7,500 off to buy one, we would not be seeing this influx of orders. The fundamental issue with the tax credit is the fact that it is a bit of a crutch for automakers, and that crutch is about to be removed — abruptly.

Sustained incentives for EVs are something that was never going to be available under the Trump Administration. The true demand of EVs will be revealed in Q4, and likely over the first two quarters of 2026.

Policy Instability is a Barrier for Consumers…and Automakers

With the One Big Beautiful Bill that the Trump Administration rolled out, the tax credit’s sunset came abruptly.

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Previously, the credit’s termination was set for 2032, but the change, which is absolutely justified in terms of the White House’s powers, sets a tough precedent moving forward: different administrations and different planning for how government funds are spent could dramatically alter plans.

For consumers, their confidence in the stability of these types of programs will be decreased. If a Democrat gets elected in 2028, will the credit return? It’s likely that the credit could become an “On for 4, Off for 4” type of arrangement, depending on the party in the White House, as well as the concentration of that party in the House and Senate.

For automakers, the long-term planning of their supply chains, including whether domestic manufacturing is prioritized and how much capital to allocate toward EVs, becomes a significant question.

If it needs volume to bring down EV prices, the absence of a credit will impact that drastically. Fewer people being able to afford EVs because of their premium prices could put companies in a very strange predicament.

Their roadmaps for their future lineups will be impacted, and they may have to go back to the drawing board for future plans.

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Environmental and Economic Stakes

It is important to remember that the EV tax credit was not just a way to make cars more affordable. It was a tool to reduce emissions from passenger transportation. This is the largest source of greenhouse gases in the United States.

Ending the credit risks slowing progress toward climate goals and ceding ground to global competitors, especially China, a global tech hub that has a large population willing to embrace new tech.

Xiaomi CEO congratulates Tesla on first FSD delivery: “We have to continue learning!”

The U.S. needs a stable, long-term strategy to incentivize both consumers and manufacturers to reach climate goals. Short-term band-aids are not going to drive innovation or adoption forward.

Call to Action

To secure a thriving and equitable future for the EV industry, Congress could consider a variety of alternatives that benefit buyers who could use assistance. A tiered incentive program that prioritizes affordability and American innovation would benefit buyers who prefer an EV while making them accessible to lower and middle-income families and buyers.

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Higher credits for EVs priced under $40,000 to reach these income levels would be ideal. Additionally, bonuses for vehicles and batteries that are domestically sourced would also encourage car companies to bring manufacturing to the United States, while also helping car buyers lean toward vehicles built here.

The rush to secure credits by consumers proves that incentives work. The United States should be working toward a long-lasting framework that makes EVs accessible to all, while giving the country a competitive edge to compete against powerhouses like China.

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Tesla reveals it has expanded its Robotaxi fleet in Austin

there has never been an exact count of the Robotaxi fleet size, and Tesla continues to speak in cryptic fashion, only hinting at what the number of active vehicles could be.

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(Credit: Tesla)

Tesla revealed that it has expanded its Robotaxi fleet in Austin, Texas, but has not yet disclosed the exact number of vehicles currently operating as driverless ride-hailing cars in the city.

Before Tesla launched the Robotaxi fleet in Austin on June 22, CEO Elon Musk stated that the fleet would be initially small, comprised of between ten and twenty vehicles in total.

The small fleet size was a way to limit rides and not overwhelm the company as it launched into a new territory: offering driverless rides to those looking to get around Austin. With safety being prioritized, it was understood.

However, there has never been an exact count of the Robotaxi fleet size, and Tesla continues to speak in cryptic fashion, only hinting at what the number of active vehicles could be.

On Tuesday, it expanded its geofence for the third time, increasing the service area in Austin beyond the downtown area and into the suburbs, including the airport and even the Gigafactory Texas.

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Tesla one-ups Waymo once again with latest Robotaxi expansion in Austin

The size of the geofence is now 173 square miles, up from 91 square miles, which is what it grew to in early August with its second expansion.

The company also said it “increased the number of cars available by 50 percent,” but would not give an exact count:

Skeptics of the Robotaxi platform usually point to two things: the presence of a Safety Monitor in the vehicle and the lack of transparency regarding fleet size.

Tesla has done an excellent job of expanding the service area over the past two months, but it is also expanding the number of people it allows to hail a Robotaxi.

This makes the need for an increased fleet size more imperative.

However, no good reason comes to mind for the company not to tell an exact number, but Tesla has its justifications for it. Grok suggests the Robotaxi fleet could be anywhere from 30 to 75 vehicles in total, but this includes the Bay Area.

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Musk did say Tesla is working to get the Bay Area fleet to over 100 vehicles. Hopefully, some clarification regarding fleet size will be provided in the coming weeks or months as the service area in Austin continues to expand.

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Tesla China working overtime to deliver Model Y L as quickly as possible

This was, at least, hinted at by Tesla China VP Grace Tao in a post on Weibo.

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Credit: Tesla China

The Tesla Model Y L appears to be a big hit in China, and this has resulted in Giga Shanghai doing all it can to meet all the orders for the extended wheelbase all-electric crossover.

This was, at least, hinted at by Tesla China VP Grace Tao in a post on Weibo.

Model Y L demand

The demand for the Model Y L in China seems to be substantial. Just days following the vehicle’s release, industry watchers estimated that Tesla received about 35,000 orders for the vehicle on the day of its launch. More recent estimates from industry watchers have suggested that Tesla China might have doubled its usual vehicle orders for August thanks to the new variant.

Considering the seemingly strong demand for the new Model Y L, it was no surprise that Tesla China would be extremely busy trying to address all the orders for the vehicle. Fortunately, VP Grace Tao highlighted in her Weibo post that Tesla is pushing hard to ensure that deliveries of the extended wheelbase all-electric crossover could start as soon as possible.

“Our colleagues at the Shanghai Gigafactory are working overtime to get the new car to you as soon as possible,” the Tesla China executive wrote in her Weibo post. 

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Model Y L deliveries

When the Model Y L was initially released, Tesla China listed the vehicle’s first deliveries to be sometime in September 2025. As of writing, however, new orders of the new Model Y L are listed with an estimated delivery date of October 2025. This suggests that the Model Y L has been sold out for September

The new Model Y L has the potential to be a best-seller for the electric vehicle maker, thanks in part to its comfortable six-seat configuration and its reasonable starting price of RMB 339,000 ($47,180). 

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