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Tesla Model S and Model Y miss out on Consumer Reports ‘recommended’ rating

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Consumer Reports dropped its recommendation of Tesla’s flagship sedan, the Model S, after the organization performed its annual Auto Reliability Survey and found issues with the vehicle’s air suspension and main computer and touchscreen controls. Additionally, the Model Y contributed to a lowering in Tesla’s reliability from the magazine.

CNBC spoke to Consumer Reports’ Senior Director of Automotive Testing, Jake Fisher, who stated that the issues were enough to remove the recommendation that the product testing company once had on the vehicle.

“We see a variety of problems on that car. It’s wavered throughout its life cycle,” Fisher told CNBC. At one point, the Model S was CR’s top-rated vehicle and listed the P85D variant as the best car of all-time in 2015.

However, the removal of the Model S means that only the Tesla Model 3 remains as a “recommended” vehicle by CR. The Model Y never made it to the list, and Fisher added details regarding the all-electric crossover’s issues, which were spotted by CR.

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According to Fisher, the Model Y had a number of misaligned body panels, and human hair was found “stuck in the paint,” according to Reuters“I am surprised that we would see just basic paint and trim type issues and body panel fitment issues,” Fisher said. “Really disappointing when you spend this much money for a car, and hopefully they’ll be able to rectify a lot of these as time goes by.”

The Model Y was given a rating that was “much worse the average” after the examination.

Both Tesla and CR have had a tumultuous relationship with one another, and it is important to identify the relationship that CR has with Tesla.

CR has jostled with ratings of the Model S, Model 3, and Model X several times throughout the past few years. After adding, removing, and re-adding each vehicle several times, CR finally admitted that the Model S and Model 3 were recommended once again in November 2019, after “improved reliability” was reported by the company. A survey of 5,000 Model 3 owners, which revealed positive reviews in terms of the company’s build quality, had shown that Tesla had improved the vehicle’s status during the production process.

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However, CR has continued to cast stones in the direction of Tesla: One in the form of a dismissive review of Smart Summon, another in a very one-sided critique of Autopilot, which stated it was a “distant 2nd” to GM’s Super Cruise.

Tesla Autopilot is now a ‘distant 2nd’ to GM Super Cruise: Consumer Reports

Tesla has confronted the issues with the touchscreen controls on several occasions. The company recently announced that it would be offering warranty extensions on older infotainment systems on Model S and Model X vehicles.

CR has not always been negative toward Tesla, though. The company did list the Model 3 as the only American-made car in Consumer Reports’ Top Picks of 2020. Additionally, CR recognized that Tesla has industry-leading battery tech and energy efficiency.

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Consumer Reports has had quite a tumultuous relationship with Tesla, but the issues recognized in the most recent Model S examination may cause the electric automaker to improve upon any identified issues. After improvements are made, the Model S and Model Y could join the Model 3 as “recommended” by CR.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Musk bankers looking to trim xAI debt after SpaceX merger: report

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.

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Credit: SpaceX

Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.

xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.

The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.

SpaceX IPO is coming, CEO Elon Musk confirms

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The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.

Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”

That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.

X merged with xAI last March, which brought the valuation to $45 billion, including the debt.

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SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:

“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”

The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.

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Tesla pushes Full Self-Driving outright purchasing option back in one market

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

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Credit: Tesla

Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.

The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.

Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.

If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.

The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.

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Tesla hits major milestone with Full Self-Driving subscriptions

However, Tesla just launched it just last year in Australia.

Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.

The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.

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In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.

The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.

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Starlink terminals smuggled into Iran amid protest crackdown: report

Roughly 6,000 units were delivered following January’s unrest.

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Credit: Starlink/X

The United States quietly moved thousands of Starlink terminals into Iran after authorities imposed internet shutdowns as part of its crackdown on protests, as per information shared by U.S. officials to The Wall Street Journal

Roughly 6,000 units were delivered following January’s unrest, marking the first known instance of Washington directly supplying the satellite systems inside the country.

Iran’s government significantly restricted online access as demonstrations spread across the country earlier this year. In response, the U.S. purchased nearly 7,000 Starlink terminals in recent months, with most acquisitions occurring in January. Officials stated that funding was reallocated from other internet access initiatives to support the satellite deployment.

President Donald Trump was aware of the effort, though it remains unclear whether he personally authorized it. The White House has not issued a comment about the matter publicly.

Possession of a Starlink terminal is illegal under Iranian law and can result in significant prison time. Despite this, the WSJ estimated that tens of thousands of residents still rely on the satellite service to bypass state controls. Authorities have reportedly conducted inspections of private homes and rooftops to locate unauthorized equipment.

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Earlier this year, Trump and Elon Musk discussed maintaining Starlink access for Iranians during the unrest. Tehran has repeatedly accused Washington of encouraging dissent, though U.S. officials have mostly denied the allegations.

The decision to prioritize Starlink sparked internal debate within U.S. agencies. Some officials argued that shifting resources away from Virtual Private Networks (VPNs) could weaken broader internet access efforts. VPNs had previously played a major role in keeping Iranians connected during earlier protest waves, though VPNs are not effective when the actual internet gets cut.

According to State Department figures, about 30 million Iranians used U.S.-funded VPN services during demonstrations in 2022. During a near-total blackout in June 2025, roughly one-fifth of users were still able to access limited connectivity through VPN tools.

Critics have argued that satellite access without VPN protection may expose users to geolocation risks. After funds were redirected to acquire Starlink equipment, support reportedly lapsed for two of five VPN providers operating in Iran.

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A State Department official has stated that the U.S. continues to back multiple technologies,  including VPNs alongside Starlink, to sustain people’s internet access amidst the government’s shutdowns.

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