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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.

“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.

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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.

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.

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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.

RELATED:

Tesla urged to rethink unorthodox vehicle controls by traffic safety expert

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.

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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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Investor's Corner

Tesla reports Q3 Earnings today: here’s what to expect

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Credit: TechOperator | X

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.

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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

  1. How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
  2. When can we anticipate FSD unsupervised in customer cars?
  3. When will the CyberCab be available for customer purchase/ownership?
  4. What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
  5. 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.

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SpaceX confirms Starship 15 launch window with massive ambitions

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Credit: SpaceX

SpaceX confirmed the date of Starship’s 15th launch window with some massive ambitions for the mission, as it will attempt to catch Ship for the first time.

CEO Elon Musk confirmed during SpaceX’s Earnings Call last night on October 20 that it would launch Starship for its 15th test flight in November, and there are some incredible things the company wants to try, making it perhaps the most groundbreaking launch in the program’s history.

SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms

The most major development of the call was SpaceX’s intention to catch Ship alongside catching the Super Heavy Booster, something that has happened in the past. SpaceX showed an animation of the Ship catch, which will be done on the launch tower’s chopsticks:

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This monumental goal is to catch both the Ship and Booster in a dual-catch scenario, an incredible feat since SpaceX has never been able to reuse a Ship after launch. Musk said it would be “the first time that an orbital launch vehicle has been fully recovered,” and said it would be a “profound technology milestone.”

Musk said the odds of success on this first Ship catch attempt are “more likely than not,” but SpaceX is ultimately prepared for more tries moving forward. The SpaceX frontman said that, starting next year, Starship would have a “steady stream” of flights through the end of the year.

The cadence will accelerate in 2027, with Musk stating the company plans to target weekly flights in the first half of 2027 and twice-weekly by year-end.

The Flight 15 attempt follows that of Flight 14, which took off in late September and was Starship’s first orbital mission. It deployed 26 Starlink V3 satellites, accomplished a controlled ocean splashdown of both stages, and shed more light on potential challenges for the program moving forward.

As of now, the Starship program is firing on all cylinders.

Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.

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Investor's Corner

SpaceX stock gets a slew of price target boosts after bullish earnings call

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Wall Street analysts rapidly raised price targets on SpaceX (NASDAQ: SPCX) after the company reported a bullish third quarter for 2026 following the market close on October 20. Shares were sent sharply higher in after-hours and premarket trading.

SpaceX posted revenue of $14.6 billion, a 161 percent year-over-year increase that comfortably topped consensus estimates, which fell near $12.7 billion. The company also posted a net profit of $4.4 billion from a prior-year loss, with adjusted EBITDA reaching $8.8 billion.

Its Super Intelligence (AI) division generated roughly $7.6 billion and became the largest revenue contributor, growing nearly 830 percent year-over-year, while the Connectivity segment delivered $5.2 billion on strong subscriber additions that lifted the consumer base to 13.6 million for Starlink.

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The Earnings Call proved especially catalytic, as CEO Elon Musk and CFO Bret Johnsen outlined Q1 2027 revenue guidance of $33 billion to $37 billion, which was far above the roughly $22 billion analysts had modeled, alongside fourth-quarter capital-expenditure plans of $35 billion to $40 billion focused on AI compute infrastructure at sites including Memphis and Southaven.

SpaceX delivers blockbuster Q3 results as Super Intelligence segment booms

Management targets 2.5 to 3 gigawatts of nameplate compute capacity by year-end and discussed pathways to 13 gigawatts or more by the end of 2027. Musk described relentless demand from hyperscalers and other customers, with compute pricing supporting payback periods of less than a year and potentially as short as six months.

Additional highlights included Starship’s recent orbital success and V3 satellite deployment, Starlink pricing and enterprise momentum, rapid Grok Bot adoption, spectrum expansion plans, and the formation of special committees to explore a possible combination with Tesla.

These elements prompted a wave of price-target increases:

  • JPMorgan more than doubled its target to $500 from $240 while maintaining an Overweight rating.
  • Cantor Fitzgerald lifted its target to $345 from $246 (Overweight).
  • Barclays raised its target to $300 from $254 (Overweight).
  • Citi increased its target to $240 from $200 (Buy),
  • UBS moved to $230 from $210 (Buy), and
  • TD Cowen raised its target to $224 from $200 (Buy).
  • Morgan Stanley held an Overweight rating with a $300 target.
  • Other firms also adjusted higher, including Wells Fargo (to $274 from $214) and Clear Street (to $248 from $217). Analysts broadly cited the strong quarterly print, accelerating AI compute expansion, Starlink progress, and Starship milestones as drivers of higher long-term growth and earnings power.

Shares, which closed at $147.79 on October 20, jumped roughly 8 percent in early premarket trading on October 21 as investors digested the results and the newly elevated Street targets.

The average analyst price target has moved higher, which reflects greater conviction in SpaceX’s trajectory across launch, connectivity, and the Super Intelligence business, even as elevated spending remains a point of focus.

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