Tesla loses its lead in electric vehicle quality


A dog looks out the window of a Tesla electric vehicle charging at a Tesla Supercharger in Santa Monica, California, on May 15, 2024.

Patricio T. Fallon | AFP | Getty Images

Tesla is losing its lead over traditional automakers in the quality of its new all-electric vehicles, according to an influential annual study by JD Power.

The 2024 US Initial Quality Study found that the quality of battery electric vehicles, or BEVs, from Tesla and those from traditional automakers were the same, with 266 problems reported per 100 newly sold vehicles or leased.

Previously, Tesla models had surpassed electric vehicles from traditional automakers in the annual survey. Last year, Tesla received a rating of 257 problems per 100 vehicles, compared to 265 problems per 100 vehicles on average for electric vehicles from traditional automakers.

The study attributes Tesla's growing problems to a negative customer response after the company eliminated controls for traditional functions such as turn signals and windshield wipers.

Across the industry, not just BEVs, Tesla has consistently ranked toward the bottom in initial quality since JD Power began including Tesla in the study in 2022.

Overall, the study, which for the first time included data from repair visits from franchised dealers, found that electric vehicles such as BEVs and plug-in hybrid electric vehicles (PHEVs), are plagued with more problems than traditional gasoline and diesel vehicles with internal combustion engines.

“Owners of cutting-edge technology-packed BEVs and PHEVs are experiencing problems that are of a high enough severity level to take their new vehicle to the dealership at a rate three times higher than that of owners of gasoline-powered vehicles,” JD Power senior director of automotive benchmarking Frank Hanley said in a news release.

The study found that plug-in vehicles require more repairs than gasoline vehicles in all repair categories.

BEVs averaged 266 problems per 100 vehicles, 86 points higher than gasoline- and diesel-powered vehicles, which averaged 180 problems per 100 vehicles, according to the study. A lower score indicates a higher quality of the vehicle.

Top concerns included features, controls and displays, as well as wireless smartphone integration, as customers reported frequent difficulties with Apple CarPlay and Android Auto.

The study also reported frustration with false warnings, unnecessary traffic alerts and automatic braking features. Specifically, rear-seat reminders contribute 1.7 problems per 100 vehicles industry-wide, as owners report receiving signals even when no one is in the back seat.

“Not surprisingly, the introduction of new technology has challenged manufacturers to maintain vehicle quality,” Hanley said.

— CNBC's Michael Wayland contributed to this report.

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