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 in downward trend: 10-day moving average broke below 50-day moving average on June 18, 2026
The 10-day moving average for TSLA crossed bearishly below the 50-day moving average on June 18, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on July 14, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TSLA as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TSLA turned negative on July 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
TSLA moved below its 50-day moving average on July 07, 2026 date and that indicates a change from an upward trend to a downward trend.
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 .
The Aroon Indicator for TSLA entered a downward trend on July 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 341 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.
Fundamental Analysis (Ratings)
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 steady 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 that the returns do not compensate for the risks. TSLA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock better than average.
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 (16.694) is normal, around the industry mean (9.136). P/E Ratio (343.128) is within average values for comparable stocks, (581.067). Projected Growth (PEG Ratio) (4.687) is also within normal values, averaging (2.777). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.038). P/S Ratio (13.495) is also within normal values, averaging (13.213).
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.
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a manufacturer of electric sports cars
Industry MotorVehicles
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