Tesla shares up premarket after Elon Musk says issue raised by Consumer Reports will be fixed shortly
Tesla Inc. shares rose 1.1% in premarket trade Tuesday, after Chief Executive Elon Musk said a problem with the Model 3 that led Consumer Reports to deny the vehicle a recommendation will be fixed with a software release in a few days. “Looks like this can be fixed with a firmware update,” Musk wrote in a late Monday tweet. “Will be rolling that out in a few days. With further refinement, we can improve braking distance beyond initial specs. Tesla won’t stop until Model 3 has better braking than any remotely comparable car.” Consumer Reports said Monday that while “”there’s plenty to like” about the Model 3, issues with the mass-market sedan’s braking, touch-screen controls, and ride quality “hurt” the car’s standings with Consumer Reports, the magazine said Monday. As a result, the Model 3 did not earn a Consumer Reports recommendation, the magazine said on its website. “These performance and ergonomics problems were serious downsides to an otherwise impressive performance sedan,” which included wins such as a “blistering” 0-to-60-mph time of 5.3 seconds, a handling equaling of a much pricier vehicle, and the longest distance on a single battery charge that the magazine ever recorded in an electric car, 350 miles. The Consumer Reports testers “found the Model 3 thrilling to drive,” the magazine said. Shares have fallen 8.3% in the last 12 months, while the S&P 500 has gained 14%.