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Consumer Reports Retracts Tesla Model S Reliability Rating

Consumer Reports has downgraded Tesla Model S reliability to “worse than average.” As a result, it no longer recommends the Model S to car buyers.

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Consumer Reports (CR) has downgraded its estimate of Tesla Model S reliability to “worse than average”. In its annual survey of vehicle owners, CR received feedback from 1,400 Model S owners, “who chronicled an array of detailed and complicated maladies” with the drivetrain, power equipment, charging equipment and 17″ touchscreen center console.

Among the issues being surfaced are complaints around body and sunroof squeaks, as well as rattles and leaks, according to Jake Fisher, CR’s director of automotive testing. “As the older vehicles are getting up on miles, we are seeing some [Model S] where the electric motor needs to be replaced and the onboard charging system won’t charge the battery,” Fisher said.  “On the newer vehicles, we are seeing problems such as the sunroof not operating properly. Door handles continue to be an issue.”

As a result of the reported reliability issues, the Tesla Model S is no longer recommended by Consumer Reports.

Why are a few malfunctioning door handles such a big deal? Some people are concerned that if Tesla can’t get them to work right, how in the world will it keep the complex falcon wing doors on the Model X functioning properly as the years and miles go by?

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Tesla is now on the cusp of bringing forth the long awaited Model 3, the lower priced car that is supposed to begin fulfilling Elon Musk’s dream of creating a mass market electric vehicle. Factor in delivery delays plaguing the Model X, quality issues that Consumer Reports has uncovered, and the prospect that the Model 3 will be late to market, the way the Model S and Model X were before it, and some people worry that the company has written checks it can’t cash.

The news from Consumer Reports sent Tesla stock into a tailspin on Wall Street Tuesday slipping as much as 10% during the trading day, before rebounding to finish off down 7% at $213.03.

Emmanuel Rosner, autos analyst at CLSA Americas, an international investment firm, told the Los Angeles Times, “We have already seen consistent product delays, and now there are quality issues. Investors are betting on the Model 3 being a mass-market car, but having low-quality marks is a real knock if you are going to put out a volume car,” Rosner said. “Tesla has to get its quality issue in order.”

Tesla spokesman Ricardo Reyes responded that the company keeps in close communication with its customers to “proactively address issues and quickly fix problems.” He noted that over-the-air software updates allow Tesla to diagnose and fix most problems without the cars needing to come in for service.

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“In instances when hardware needs to be fixed, we strive to make it painless,” said Reyes, who went on to point out that, “Consumer Reports also found that customers rate Tesla service as the best in the world.”

But will that remain true the day we see a half million or more Tesla automobiles on the road? That’s a question that has a lot of people concerned and one that only time can answer.

 

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Tesla Cybercab display highlights interior wizardry in the small two-seater

Photos and videos of the production Cybercab were shared in posts on social media platform X.

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Credit: Tesla Robotaxi/X

The Tesla Cybercab is currently on display at the U.S. Department of Transportation in Washington, D.C., and observations of the production vehicle are highlighting some of its notable design details. 

Photos and videos of the production Cybercab were shared in posts on social media platform X.

Observers of the Cybercab display unit noted that the two-seat Robotaxi provides unusually generous legroom for a vehicle of its size. Based on the vehicle’s video, the compact two-seater appears to offer more legroom than Tesla’s larger vehicles such as the Model Y, Model X, and Cybertruck.

The Cybercab’s layout allows Tesla to dedicate nearly the entire cabin to passengers. The vehicle is designed without a steering wheel or pedals, which helps maximize interior space.

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Footage from the display also highlights the Cybercab’s large center screen, which is positioned prominently in front of the passenger bench. The display appears intended to provide entertainment and ride information while the vehicle operates autonomously.

Images of the vehicle also show an additional camera integrated into the Cybercab’s C-pillar. The extra camera appears to expand the vehicle’s field of view, which would be useful as Tesla works toward fully unsupervised Full Self-Driving.

Tesla engineers have previously explained that the Cybercab was designed to be highly efficient both in manufacturing and in operation. Cybercab Lead Engineer Eric E. stated in 2024 that the Robotaxi would be built with roughly half the number of parts used in a Model 3 sedan.

“Two seats unlocks a lot of opportunity aerodynamically. It also means we cut the part count of Cybercab down by a substantial margin. We’re gonna be delivering a car that has roughly half the parts of Model 3 today,” the Tesla engineer said.

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The Tesla engineer also noted that the Cybercab’s cargo area can accommodate multiple golf bags, two carry-on suitcases, and two full-size checked bags. The trunk can also fit certain bicycles and a foldable wheelchair depending on size, which is quite impressive for a small car like the Cybercab.

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Elon Musk’s xAI wins permit for power plant supporting AI data centers

The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).

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Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.

The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).

According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”

The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.

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“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.

The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.

The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.

The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.

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Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.

SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.

“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.

“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”

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Tesla China teases Optimus robot’s human-looking next-gen hands

The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.

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Credit: Tesla China

A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus. 

The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.

As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.

If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.

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Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.

Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.

In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.

“Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.

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If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.

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