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Tesla Shares Dip After Consumer Reports Cites Quality Issues

by Cara Caruso / / Source: CNBC.com

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Tesla shares turned lower on Tuesday after Consumer Reports released an online article saying the car maker's Model X faces quality issues.

The article highlights testimonies from Model X owners who have had a series of quality issues with the newly purchased SUVs.

A Tesla spokeswoman responded to Consumer Reports, saying, "While we have seen some issues with early Model X builds, the issues are not widespread, and we are working closely with each owner to respond quickly and proactively to address any problems."

Read More from CNBC: Tesla CEO Musk Says Model 3 Orders Now at 232,000

The report added that such quality issues are expected from brand-new models.

This follows a negative Consumer Reports post back in October of last year, claiming the Model S has too many problems to recommend.

That prompted a response on twitter from CEO Elon Musk:

Tesla recently recalled 2,700 Model X vehicles to replace a third-row seat that failed an internal crash test.

Shares of Tesla are up 18 percent over the past 12 months.

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