A new J.D. Power & Associates report titled Tesla: Beyond the Hype” takes a critical and influential look at the brand’s history of quality control and reliability issues. The report warns that if the Tesla brand does not up its quality with the upcoming Model 3 “everyman car,” the consequences will likely end in disaster for the automaker.
“Tesla owners see themselves as pioneers who enjoy being early adopters of new technology. Spending $100,000 or more on a vehicle that has so many problems usually would have a dramatically negative effect on sales and brand perception. Right now, though, Tesla seems immune from such disenchanted customers. When consumers buy a mass-market car priced around $35,000 that will be their primary mode of transportation [the Model 3], the degree of expectation will increase immensely. We’ve seen that with other well-liked brands, whether or not it involves an electric vehicle.” —Kathleen Rizk, director, global automotive consulting at J.D. Power