The JD Power 2020 Initial Quality Study (IQS) has found that vehicle buyers from Tesla Inc. (NASDAQ: TSLA) report more problems with their vehicles in the first 90 days of ownership compared to other new vehicle owners.
What happened
The JD Power 2020 Initial Quality Stud is a survey of the problems encountered by new car owners of the latest models.
Tesla was first profiled at the IQS. The automaker scored 250 and was the lowest among all manufacturers covered in the study.
Tesla’s classification in the study is unofficial as it does not meet the study criteria.
Doug Betts, president of JD Power’s automotive division, said, “Unlike other manufacturers, Tesla does not grant us permission to survey its owners in 15 states where necessary.”
Betts revealed how Tesla was ranked and said, “We were able to collect a large enough sample of homeowner surveys in the other 35 states, and based on that we calculated the Tesla score.”
Because it is important
The industry average for 2020 vehicles was 166 problems per 100 vehicles. The top-ranked manufacturers were Fiat Chrysler Automobiles NV’s (NYSE: FCAU) Dodge and Kia Motors Corporation, both tied for 136 problems per 100 vehicles.
According to Dave Sargent, vice president of automotive quality for JD Power, vehicles with less technology generally perform better in the study.
Betts told CNBC in an email that Tesla’s problems range from imperfections in the paint, poor fit of the body panels, trunks and hoods, which are difficult to open, as well as squeaks and rattles.
Tesla’s faulty touchscreens have recently attracted an investigation by the US National Highway Traffic Safety Administration. USA
Price action
Tesla shares traded 1.03% lower at $ 951 in the after-hours session on Wednesday. The shares closed the regular session 4.09% lower at 960.85.
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