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Why Tesla Ranks Lower In Consumer Reports' Annual Vehicle Reliability Survey

Benzinga · 11/16/2022 06:04

Close on the heels of a fatal accident involving a Tesla Inc. (NASDAQ:TSLA) car in China, a private survey found that the reliability of its vehicles in the U.S. was in the bottom quartile.

What Happened: Tesla ranked 19th in a list of 25 automakers with an average reliability score of 40, according to Consumer Reports’ annual auto reliability brand ranking for 2022. On a positive note, the electric vehicle maker’s rank improved by four notches this year.

Among Tesla's brands, the reliability score was the highest for the Model 3 sedan at 59 followed by Model Y, with a score of 38, and Model S, with a score of 25.

While Model 3’s reliability remained average, Model Y continued to have hardware issues with tailgate and door alignment as well as paint defects, along with climate system and steering/suspension problems, Consumer Report said.

Model S, meanwhile, had issues with the suspension, body hardware, climate system, drive system and in-car electronics, it added.

See Also: Charlie Munger Lauds Tesla's Unexpected 'Minor Miracle' In Car Business, Elon Musk Reacts

Earlier this month, Tesla recalled 40,000 Model 3, X vehicles due to issues with the electronic power assist steering system.

Asian Manufacturers Lead: Japanese automaker Toyota Motor Corp. (NYSE:TM) topped in the reliability score, as its Toyota branded vehicles got a reliability score of 72. Toyota’s luxury brand Lexus, which was the previous year’s topper, slipped to the second position.

German automaker BMW AG (OTC:BMWYY) was ranked third with a score of 65. The luxury automaker’s ranking jumped 10 spots to the current level.

Mazda Motor Corp. (OTC:MZDAY) and Honda Motor Company Limited. (NYSE:HMC) were ranked fourth and fifth, respectively.

Cars Most Reliable: Consumer Reports survey showed that sedans, hatchbacks and coupes, making up the car category, were the most reliable vehicles followed by SUVs, Minivans and pickup trucks.

If domestic brands were alone taken into consideration, SUVs and pickups proved more reliable than their cars.

Within EV models, hybrid cars and plug-ins were the most reliable, with an average score of 78. Standout models from the category include Toyota Corolla Hybrid, Prius and Prius plug-in hybrid. Hybrid SUVs and pug-ins were the third most reliable category, while full-sized pickup trucks were the least reliable vehicles among EVs.

The second least vehicle categories in the electrified segment were electric cars and SUVs.

“As more EVs hit the marketplace and automakers build each model in greater numbers, we are seeing that some of them have problems with the battery packs, charging systems and the motors in their drive systems,” the non-profit organization that evaluates consumer products and services said.

Price Action: According to Benzinga Pro data, Tesla closed Tuesday’s session 1.82% higher at $194.42.

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