Elon Musk Defends Tesla Model S In Face Of Consumer Reports

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  • Shares of Tesla Motors Inc TSLA initially sold off nearly 10 percent after Consumer Reports said it can no longer recommend owning the Model S sedan.
  • Tesla's stock bounced higher during Thursday's pre-market trading session as the company's CEO Elon Musk defended his products.
  • Musk Tweeted that the Consumer Reports reliability survey focused on issues that pertained to early production cars and has already been addressed in new cars.
Shares of Tesla took a sharp turn lower on Tuesday after Consumer Reports
indicated it can no longer recommend consumers buy a Model S sedan. The influential and highly regarded consumer magazine surveyed 1,400 Model S owners who weren't fully satisfied with their vehicle. Investors and traders found the report rather concerning as Consumer Reports rated the Tesla Model S P85D sedan in August with a 103 point score out of a possible 100. Consumer Reports' concluded its report by slapping the Model S sedan with a "worse-than-average" rating. Shares of Tesla traded lower by nearly 10 percent on Tuesday before slightly rebounding. Nevertheless, the stock is still lower by nearly five percent since Monday. Musk Out With An Explanation Tesla's CEO Elon Musk took to
Twitter
on Wednesday to defend his products. His explanation was concise and to the point: "Consumer Reports reliability survey includes a lot of early production cars. Already addressed in new cars."
Investors and traders appear to have been satisfied with the initial defense. Shares were trading higher by nearly one percent with more than an hour to go before Thursday's opening bell.
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Posted In: NewsConsumer ReportsElon MuskModel S ReviewTeslaTesla Model STesla P85D
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