News
CR responds to Tesla over claims that its reviews are inaccurate and misleading
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.
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.
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.
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.
Update: 10/22 10:51a – Para 1 consumers changed to “customers” for accuracy.
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by customers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.
Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:
- Total Revenues: $28.34B
- Non-GAAP EPS: $0.43
- Operating Margin: 2.5%
- Operating Income: $721M
- Free Cash Flow: ~-$4.51B
Here are a few things we are looking forward to hearing about on the call:
Automotive Gross Margin and Overall Profitability
This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.
Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.
Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress
The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.
Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Say Investor Questions
- How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
- When can we anticipate FSD unsupervised in customer cars?
- When will the CyberCab be available for customer purchase/ownership?
- What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
- Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?
The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.
Tesla Cybercab gets a for sale date at last
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
