The maker of electric cars, Tesla Motors Inc (NASDAQ:TSLA), gained some negative publicity when the customers revealed that the Model S of Tesla developed snags when used for a longer period of time. This news hit the market when the stocks of Tesla Motors Inc (NASDAQ:TSLA) gained around 4.51 percent upon an upgrade of the ratings by the analyst of Deutsche Bank.
Some other flaws include noise from the car’s components, issues with the lid release of front trunk and the touch screen’s (center) blanking out. In is important to note here that the center touch screen is responsible for many key functions. According to the customers, most of these issues became prominent after the car travelled around 10,000 miles.
Some other users also reported problems with the door handles of the car. The door handles of Model S automatically extend upon driver’s approach; however, at certain occasions, the handles failed to extend. Tesla Motors Inc (NASDAQ:TSLA) fixed the handle issue by updating the car’s software.
Furthermore, Edmunds.com, an automobile data provider company based in California, recently reported some additional problems with Model S. The issues included stalling of the vehicle, freezing of the center touch system and problems with the sun roof and steering wheel.
On the plus side, Tesla Motors Inc (NASDAQ:TSLA) resolved all these issues both for Edmunds.com as well as the consumer reports without charging a penny, for the vehicles had a warranty. The company also admitted that the early models of the vehicles had some problems; however, those issues were fixed and the later models did not suffer from any flaws. Sources have it that the company holds a meeting every week in order to discuss and fix the problems and flaws pointed out by their valued users.
It is pertinent to note here that Model S was given the award of the best car of 2014 based on the consumer reports that surveyed around 260 Model S vehicles. Consumer Reports evaluated the vehicles based on some 50 tests together with the ratings and reliability scores provided by the users. It also included a section for the points scored by the vehicles in the crash tests of insurance and governments industries.
The model S of
gained 99 points out of a total of 100 points in the consumer satisfaction sections as well. The score is the highest that any model ever gained during the last few years.
Results were based on some 350,000 responses from the users who owned Model S.
Nonetheless, Consumer Reports has not reduced the reliability scores of Tesla vehicles yet; though it says that a downgrade is possible in the near future if the users continue to report flaws with the Model S.
In the meantime, the analyst at Deutsche Bank increased the ratings of the company from ‘hold’ to ‘buy’ with a new target price of $310. The analysts said that the annual production of the company is expected to hit around 1 million units by the end of 2025, which means that the company’s numbers are likely to exceed the estimates. This increase in the ratings of Tesla Motors Inc’s (NASDAQ:TSLA) stocks resulted in a 4.51 percent increase in the share prices of the company.
The company recently holds a #1 Zacks rank with a strong ‘buy’ rating.
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