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May 23, 2018

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Tesla refutes report of 鈥榖ig flaws鈥

Tesla Inc Chief Executive Officer Elon Musk has sought to play down a report identifying 鈥渂ig flaws鈥 in its Model 3 sedan, admitting there is a braking issue with the vehicle but saying it will be fixed with a software update within days.

Responding to a review by influential US magazine Consumer Reports which stopped short of recommending the car, Musk said in a round of tweets late on Monday that the magazine鈥檚 tests 鈥 which used two separately-sourced vehicles 鈥 had been of older versions of the car that had already been improved upon.

The issue, which ate into gains for Tesla shares on Monday, came at a time when Tesla is dealing with reports of crashes involving its vehicles and growing scepticism over its finances.

Tesla stock, down around US$100 since last September, gained around 1 percent yesterday, having finished almost 3 percent higher on Monday, helped by an easing of trade tensions with China which may aid its plans to produce there.

鈥淲ith further refinement, we can improve braking distance beyond initial specs. Tesla won鈥檛 stop until Model 3 has better braking than any remotely comparable car,鈥 Musk wrote in exchanges with other twitter users.

鈥淎lso Consumer Reports has an early production car. Model 3 now has improved ride comfort, lower wind noise & many other small improvements. Will request that they test current production,鈥 he wrote.

Production of Tesla Model 3s began in July 2017 and the first regular customers only received their cars in December after some Tesla employees.

Consumer Reports said in the review on Monday that it had sourced a second privately-owned Model 3 to confirm initial results that showed the sedan braked slower than a full-sized pickup truck. The report did not mention the age of either car used in the testing.

Calling the review 鈥渧ery strange,鈥 Musk also said that the variability in stopping distance was due to an ABS (Anti-Skid Braking System) calibration algorithm.

鈥淭he CR braking result is inconsistent with other reviewers, but might indicate that some Model 3s have longer braking distances than others,鈥 he said.

鈥淚f so, we will address this at our expense. May just be a question of firmware tuning, in which case can be solved by an OTA software update.鈥

Analysts said the magazine鈥檚 story was a bad advertisement for Tesla.


 

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