Tesla Motors' stocks went on a nosedive after independent and influential product testing magazine, Consumer Reports, retracted its recommendation for the Tesla Model S, an electric plug-in car which the magazine previously raved about, according to Los Angeles Times.
One of the initial articles from the magazine praised the variety of the the Model S - the all-wheel-drive Tesla Model S P85D - and gave it 103 points for excelling in the Consumer Reports' road-test ratings system, particularly its driving performance. Consumer Reports stated in the article that that particular model performed better compared with other vehicles it has tested.
However, a survey of 1,400 Model S owners by Consumer Reports revealed that the car showed issues with its charging and power equipment, drivetrain, and ginormous iPad-looking central console. Owners also pointed out sunroof and body squeaks, leaks and rattles.
News of Consumer Reports withdrawing its recommendation significantly influenced investors' trust in the product, sending Tesla Motors crashing down to as much as 10 percent before pulling off a recovery to 7 percent at $213.03 on Tuesday.
Emmanuel Rosner, an auto analyst at CLSA Americas, an international investment firm, cited that the investor scare resulted from the compounded problems the auto firm is experiencing.
"We have already seen consistent product delays, and now there are quality issues," Rosner said.
The Consumer Reports score does not include Tesla Motors as a brand, since the car company has only one vehicle in the market. However, if the magazine was to rank Tesla in its 28-car maker lineup, it would have nabbed the 19th spot, between Acura and GMC.
The most recent ranking by Consumer Reports sees Lexus at the top, with Toyota, Audi, Mazda, and Subaru completing the top five.
Tesla Motors is reportedly working closely with its customers, Tesla spokesman Ricardo Reyes claimed. The Palo Alto-based automaking company encourages Tesla car owners to keep close communication with them so they can "proactively address issues and quickly fix problems."
