Consumer Report doubts Tesla (TSLA, $294.71) Model 3’s reliability, shares drop by 2%
A new Consumer Report published last Thursday raised questions about the reliability of Tesla’s Model 3. The report says it will no longer recommend the model, sending Tesla’s shares down by nearly 2%.
According to the senior director of automotive testing at Consumer Reports, the reliability issues arise from electronics, navigation/infotainment screens, and other issues in terms of the trim breaking and the glass. He further pointed out the Model 3 owned and tested by Consumer Reports had a rear window with a small stress fracture.
The slipping quality of the Tesla models has been a long-term concern among analysts who believe this is due to the ambitious ramping up of Model 3 production since last year. In fact, at one point the automaker added an additional Model 3 assembly line by erecting a permanent tent outside its assembly plant in Fremont, California. The Tesla employees alleged that the company was churning out a large quantity of flawed parts that pushed the automaker to repair and rework new models before they were ready for shipping.
A Tesla spokesperson defended the company’s position saying that the said report was based on data collected from July through September. So, the majority of the issues have already been addressed through design and manufacturing improvements. Further, the company’s return policy allows unhappy customers to return their cars for a full refund.
As a brand, Tesla fell 11 spots to No. 19 out of 33 brands ranked by Consumer Reports. This is one of the biggest drops in brand rankings in this year’s auto issue.
TSLA sees MACD Histogram crosses below signal line
TSLA saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 03, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for TSLA moved out of overbought territory on October 02, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 21, 2025. You may want to consider a long position or call options on TSLA as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 337 cases, the price rose further within the following month. The odds of a continued upward trend are .
TSLA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 285 cases where TSLA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (18.868) is normal, around the industry mean (4.091). P/E Ratio (261.292) is within average values for comparable stocks, (273.848). TSLA's Projected Growth (PEG Ratio) (7.679) is very high in comparison to the industry average of (1.941). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.046). P/S Ratio (16.639) is also within normal values, averaging (30.230).
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General Information
a manufacturer of electric sports cars
Industry MotorVehicles
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