Consumer Reports stops recommending Tesla 3

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Last year, the Tesla Model S lost its Consumer Reports seal of approval over reliability concerns, despite giving the auto its highest rating ever during a road test.

Tesla's stock fell as much as 2 per cent as of 12:50 p.m. Thursday in NY. The Model 3 joins the Model S on the outside of the Recommended list looking in. This has been the second time that the vehicle's price has reduced. Jake Fisher, who is the senior director of automotive testing at Consumer Reports said, "Reliability is very important".

China has levied heavy tariff rates of over 40% on imported American vehicles since August 2018 when the US-China trade war escalated.

Tesla pushed back on the magazine's assessment. "But when a vehicle has an enthusiastic following, like with Tesla, owners may overlook some issues". The Model X, meanwhile, has never received a Recommended rating. It earned the "top pick" designation among mid-size SUVs. In Tesla, the magazine practiced but more often criticism. This year, Tesla fell behind Ford Motor Co.'s (F.N) Lincoln and General Motors Co.'s (GM.N) Buick.

The decision by the nonprofit organisation is based on results of its annual reliability survey.

Another setback for Tesla this week was a report on quality issues with the Model 3. "In addition, some members reported that the Model 3's sole display screen acted strangely". Tesla wants to expand with the Model 3, the customer base for its E-cars, and had ramped up production recently with a show of strength. "We've seen this with other vehicles such as the Jeep Wrangler and Chevrolet Corvette".

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"Subaru does nearly everything really well", said Fisher.

Last year, Tesla stock took a hit when Consumer Reports withheld a recommendation for the Model 3 due to several issues, including inconsistent braking distance, excessive wind noise, a stiff ride and uncomfortable rear seat.

"A Tesla spokesperson told Consumer Reports the company had already made "'significant improvements' to correct the issues that Model 3 owners raised." .

Its findings led it to drop its ranking for Tesla to 19 from 8.

The automaker's Fiat unit finished last among 33 brands rated.

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