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Tesla’s Lead in Electric Vehicle Quality Declines as Legacy Automakers Catch Up

BusinessTesla's Lead in Electric Vehicle Quality Declines as Legacy Automakers Catch Up

Tesla is losing its lead over legacy automakers in the quality of its new all-electric vehicles, according to J.D. Power’s 2024 U.S. Initial Quality Study. The study found that Tesla’s battery-electric vehicles (BEVs) and those from traditional automakers both reported 266 problems per 100 newly sold or leased vehicles. This marks a shift from previous years when Tesla models outperformed the electric vehicles of legacy automakers. Last year, Tesla had 257 problems per 100 vehicles compared to 265 problems per 100 vehicles for EVs from traditional automakers.

The increase in reported problems for Tesla is attributed to customer dissatisfaction following the removal of traditional feature controls like turn signals and wiper stalks. In the broader industry, Tesla has consistently ranked toward the bottom in initial quality since it was first included in the study in 2022.

The study, which for the first time included data from franchised dealer repair visits, found that electric vehicles (both BEVs and plug-in hybrid electric vehicles, or PHEVs) face more issues than traditional gas- and diesel-powered vehicles with internal combustion engines. According to J.D. Power’s senior director of auto benchmarking, Frank Hanley, owners of tech-heavy BEVs and PHEVs are experiencing problems severe enough to warrant dealership visits at a rate three times higher than owners of gas-powered vehicles.

BEVs averaged 266 problems per 100 vehicles, 86 points higher than the 180 problems per 100 vehicles averaged by gas- and diesel-powered vehicles. Lower scores in this study indicate higher vehicle quality. Major concerns included features, controls, displays, and wireless smartphone integration, with customers frequently reporting difficulties with Apple CarPlay and Android Auto. Additional frustrations were reported with false warnings, unnecessary traffic alerts, and automatic braking features. Rear seat reminders alone contributed 1.7 problems per 100 vehicles, as owners often received signals even when no one was in the rear seat.

Hanley noted that it is not surprising that the introduction of new technology has challenged manufacturers to maintain vehicle quality. The study highlights the ongoing issues faced by electric vehicles and underscores the need for manufacturers to address these concerns as the industry continues to evolve.

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