Tesla spikes after Model 3 gets Consumer Reports' recommendation on its 2nd try (TSLA)
- Tesla‘s Model 3 has received Consumer Reports’ recommendation after a software update fixed braking flaws found on the first test.
- Shares rose more than 3% in trading Wednesday following the updated test.
- Follow Tesla’s stock price in real-time here.
Last week, the Model 3 failed to receive the Consumer Reports’ recommendation because of “big flaws,” including long-stopping distances in the emergency braking test and “difficult to use controls.” In the first test, the Model 3’s distance from 60 miles-per-hour to a complete stop was 152 feet — seven more than a Ford F-150 truck. But after a software update from Tesla, that distance was cut by 19 feet to 133.
“I’ve been at CR for 19 years and tested more than 1,000 cars,” Jake Fisher, director of auto testing at Consumer Reports, said. “And I’ve never seen a car that could improve its track performance with an over-the-air update.”
Consumer Reports also said Tesla appeared to be making some changes to its control interface, something it’s able to do thanks to the large touchscreen. The magazine previously said the controls could be difficult to use while driving and could lead to distraction and accidents.
Tesla is currently struggling to make enough Model 3 cars to keep up with demand and turn a profit, something CEO Elon Musk has repeatedly said will happen this year. Bloomberg estimates the company is churning out 1,489 Model 3’s per week — less than half Tesla’s goal of 5,000 per week. Over the weekend, Tesla flew in six planes full of robots and manufacturing equipment from Europe to speed up battery production.
Shares of Tesla have had a choppy start to 2018. The stock is down 11% this year as a downgrade by the credit-rating agency Moody’s, plunging bond prices, and a string of AutoPilot crashes have made headlines.
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