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Tesla falls behind in J.D. Power owner satisfaction study

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Tesla has fallen behind a few points on a recently published owner satisfaction study, with others such as Rivian, Porsche, and Jaguar landing some of the index’s top spots.

J.D. Power published its 2024 U.S. Automotive Performance, Execution and Layout (APEAL) Study last week, which measured owner satisfaction with their vehicles after 90 days of ownership. The index looked at responses from 99,144 owners of 2024 model year vehicles, noting that satisfaction for mainstream brands has increased from not resonating well with consumers in past years.

Tesla had an overall score of 870 in the evaluation, dropping from its 878 score in the 2023 APEAL Study. Meanwhile, OEMs like Porsche, BMW, Dodge, Ram, and several others saw their scores jump year over year.

Tesla is no longer just a luxury brand, says major auto outlet

“Traditional manufacturers have listened to the Voice of the Customer,” notes J.D. Power Senior Director of Auto Benchmarking Frank Hanley. “They’re launching enhanced vehicles that are more in line with what customers want, including improved interior storage and higher quality materials, as well as ensuring features have ease of use.

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“For BEVs, recent launches from traditional manufacturers have surpassed perennial leader Tesla when it comes to owners’ level of emotional attachment and excitement with their new vehicle,” Hanley said.

J.D. Power also notes that the study took place from July 2023 through May 2024, based on vehicles registered from April 2023 through February 2024. The APEAL is now in its 29th year with the 2024 publication, requesting that vehicle owners consider their satisfaction with 37 separate vehicle factors.

Infotainment systems were the lowest-ranking across all the categories evaluated with an average of 823, though the figure still marked a 5-point improvement from last year. Vehicles using Android Auto or Apple CarPlay generally ranked better, with averages of 832 and 840, respectively.

Despite Rivian and Tesla gaining high scores on the overall evaluation, these automakers and Polestar were not awarded, due to the brands not meeting study award criteria.

“Since J.D. Power is prohibited by Tesla, Polestar and Rivian from sampling owners in all states, we are not able to include their models with rank eligible models from other manufacturers.” explains Hanley.

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J.D. Power’s top-ranked vehicle brands in the 2024 APEAL Study

Top 10 premium brands by owner satisfaction

  1. Rivian (900)*
  2. Porsche (891)
  3. Jaguar (886)
  4. Land Rover (882)
  5. BMW (881)
  6. Mercedes-Benz (876)
  7. Lincoln (874)
  8. Genesis (873)
  9. Tesla (870)*
    premium segment average (870)
  10. Cadillac (868)

Top 10 mass-market brands by owner satisfaction

  1. MINI (858)
  2. Ram (854)
  3. Kia (853)
  4. Hyundai (846)
  5. GMC (845)
  6. Volkswagen (844)
  7. Buick (842)
  8. Chevrolet (841)
    mass-market segment average (838)
  9. Dodge (837)
  10. Honda (836)

*These brands did not meet the criteria for the APEAL Study’s awards, meaning that they were not rank-eligible, according to J.D. Power.

Other recent assessments from J.D. Power

Last month, Tesla, Rivian, and Polestar were given low ranks in the J.D. Power Initial Quality Study for 2024, as many battery-electric vehicles (BEVs) were reportedly found to require more repairs, in part due to including newer technology.

In May, J.D. Power ranked Tesla’s mobile app the best among several automakers, just ahead of Mercedes, BMW, and Genesis. The firm also said earlier this year that Mercedes-Benz and Tesla have the best websites in the industry.

Updated 7/29/24: Added second quote from Frank Hanley detailing the exclusion of Tesla, Rivian, and Polestar from awards.

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Elon Musk

Elon Musk echoes worries over Tesla control against activist shareholders

Elon Musk has spoken on several occasions of the “activist shareholders” who threaten his role at Tesla.

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Credit: xAI | X

Elon Musk continues to raise concerns over his control of Tesla as its CEO and one of its founders, as activist shareholders seem to be a viable threat to the company in his eyes.

Musk has voiced concerns over voting control of Tesla and the possibility of him being ousted by shareholders who do not necessarily have the company’s future in mind. Instead, they could be looking to oust Musk because of his political beliefs or because of his vast wealth.

We saw an example of that as shareholders voted on two separate occasions to award Musk a 2018 compensation package that was earned as Tesla met various growth goals through the CEO’s leadership.

Despite shareholders voting to award Musk with the compensation package on two separate occasions, once in 2018 and again in 2024, Delaware Chancery Court Judge Kathaleen McCormick denied the CEO the money both times. At one time, she called it an “unfathomable sum.”

Musk’s current stake in Tesla stands at 12.8 percent, but he has an option to purchase 304 million shares, which, if exercised, after taxes, he says, would bump his voting control up about 4 percent.

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However, this is not enough of a stake in the company, as he believes a roughly 25 percent ownership stake would be enough “to be influential, but not so much that I can’t be overturned,” he said in January 2024.

Musk’s concerns were echoed in another X post from Thursday, where he confirmed he has no current personal loans against Tesla stock, and he reiterated his concerns of being ousted from the company by those he has referred to in the past as “activist shareholders.”

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Elon Musk explains why he wants 25% voting share at Tesla: “I just want to be an effective steward of very powerful technology”

The CEO said during the company’s earnings call in late July:

“That is a major concern for me, as I’ve mentioned in the past. I hope that is addressed at the upcoming shareholders’ meeting. But, yeah, it is a big deal. I want to find that I’ve got so little control that I can easily be ousted by activist shareholders after having built this army of humanoid robots. I think my control over Tesla, Inc. should be enough to ensure that it goes in a good direction, but not so much control that I can’t be thrown out if I go crazy.”

The X post from Thursday said:

There is a concern that Musk could eventually put his money where his mouth is, and if politicians and judges are able to limit his ownership stake as they’ve been able to do with his pay package, he could eventually leave the company.

The company’s shareholders voted overwhelmingly to approve Musk’s pay package. A vast majority of those who voted to get Musk paid still want him to be running Tesla’s day-to-day operations. Without his guidance, the company could face a major restructuring and would have a vastly new look and thesis.

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People are already finding value in Tesla Robotaxi services

Tesla initially launched its Robotaxi service in Austin, though the company more recently launched it in the Bay Area.

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Credit: Tesla

Tesla’s Robotaxi service is still in its earliest days, but some consumers are already finding surprising value in the autonomous ride-hailing system. 

This was hinted at in recent comments on social media platform X. 

Robotaxi Ramp

Tesla initially launched its Robotaxi service in Austin, though the company more recently launched it in the Bay Area. Tesla’s geofence for its Robotaxi service in the Bay Area is massive, covering several times the area that is currently serviced by rival Waymo. 

As noted by the EV community members on social media, going end-to-end in Tesla’s Bay Area geofence would likely take over an hour’s worth of driving. That’s an impressive launch for the Robotaxi service in California, and considering Tesla’s momentum, its California geofence will likely grow substantially in the coming months.

Secret Advantage

As noted by Tesla owner and photographer @billykyle, the Tesla Robotaxi service actually has key advantages for people who travel a lot for their work. As per the Tesla owner, using a Robotaxi service would give back so much of his time considering that he gets about 5-7 shoots per day at times. 

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“I’ve been reflecting on how much of a game changer this is. As a photographer that runs my own business, servicing clients all around the Philadelphia area, I could ditch having a car and let an autonomous vehicle drive me between my 5-7 shoots I have per day. This would give me so much time back to work and message clients,” the photographer wrote in a post on X.

The Tesla owner also noted that the Robotaxi service could also solve issues with parking, as it could be tricky in cities. The Robotaxi service’s driverless nature also avoids the issue of rude and incompetent ride-hailing drivers, which are unfortunately prevalent in services such as Uber and Lyft. Ultimately, just like Unsupervised FSD, Tesla’s Robotaxi service has the potential to reclaim time for consumers. And as anyone in the business sphere would attest, time is ultimately money.

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Tesla Robotaxi and Supercharger Diner are killing a dreaded consumer tradition

Tesla is still just charging strictly for its services–while asking for zero tips.

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Credit: Joe Tegtmeyer/X

Tesla’s Robotaxi service and its newly launched Supercharger Diner are killing a longtime but increasingly dreaded consumer tradition in the United States. Based on videos taken of consumers using the Robotaxi service in the Bay Area, Tesla is still just charging strictly for its services–while asking for zero tips.

Tesla Services with Zero Tips

When Tesla launched the Robotaxi pilot in Austin, users quickly noticed that the company was not allowing riders to leave a tip for the service. If one were to try leaving a tip after a Robotaxi ride, the app simply flashes an image of Tesla’s meme hedgehog mascot with a “Just Kidding” message. 

At the time, this seemed like a small tongue-in-cheek joke from the electric vehicle maker. The initial Robotaxi pilot in Austin was rolled out on a small scale, after all, and some social media users speculated that tipping may eventually just be introduced to the service.

But upon the opening of the Tesla Supercharger Diner, consumers also observed that the facility does not allow tipping. Tesla’s notice is simple: “Gratuity: Tesla covers tipping for staff.” This means that employees who work at the Tesla Diner make enough to not rely on gratuities from consumers. 

And with the launch of the Robotaxi service in the Bay Area, users observed once more that Tesla is still not allowing tipping. This was highlighted by longtime Tesla owner @BLKMDL3, who shared a video of the Tesla Robotaxi app also briefly displaying the hedgehog mascot with a “Just Kidding” message when he tried leaving a tip.

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Out of Control

As noted in a report from The Guardian, tipping has been a longstanding business practice in the United States, were service workers typically make less than the federal minimum wage. With this system in place, service workers end up relying on gratuities to make ends meet. This was understandable, but after the pandemic, tipping culture ended up going out of control.

On platforms such as Reddit, users have also complained about services like Uber asking for large tips for using their services. Consumers have also shared shocking experiences involving some services that ask for tips. These include self-checkout counters, drive-throughs, hotdog stands, drug stores, a bottled water stall at a jazz festival, an airport vending machine, a used bookstore, a cinema box office, and a children’s arcade, among others.

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