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Tesla sinks nearly to the bottom of Consumer Reports reliability survey

Models X and S fare poorly, but Model 3 retains 'recommended' rating

DETROIT — Tesla Inc's high-end Model S sedan lost its "recommended" rating and the electric carmaker slid overall by six spots to almost the bottom in Consumer Reports magazine's annual reliability survey.

Every domestic automaker landed in the bottom half of the magazine's new-car reliability rankings, which include data collected for more than 500,000 vehicles. The survey, which ranked 29 brands in the U.S. market, was released on Wednesday.

"It's the complexities that have really dragged down Tesla," said Jake Fisher, the magazine's director of auto testing. "The majority of the problems that we're seeing with Tesla truly are mechanical issues."

The Model S appears similar to the model launched six years ago, but Tesla has made significant mechanical and software changes over the past few years, including making air suspension and all-wheel-drive standard, he said. That can hurt reliability as more complexity is added.

Tesla said it had streamlined and simplified Model S configurations, not made them more complex. It also said the issues cited by owners in the Consumer Reports survey had previously been addressed by the carmaker, including with over-the-air software updates.

"Not only are our cars the safest and best performing vehicles available today, but we take feedback from our customers very seriously and quickly implement improvements," the company said in a statement.

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Tesla said that was why the Model S has been top ranked on Consumer Reports' owner satisfaction survey every year since 2013, when the carmaker was first included.

Toyota Motor Corp's Lexus and Toyota brands took the top two spots in the survey, as they have for six consecutive years. The survey comprises reader responses on some 500,000 vehicles. Full survey results can be found at CR.org/reliability.

The magazine's annual survey of new vehicle reliability predicts which cars will give owners fewer or more problems than their competitors, based on data collected. Its scorecard is influential among consumers and industry executives.

Tesla's ranking slid to No. 27, ahead of only General Motors Co's Cadillac brand and Volvo.

The Model S, which starts at $74,500, dropped to "Below Average" from "Above Average" last year, and its overall score denied it Consumer Reports' "Recommended" tag. Owners reported suspension problems and other issues, including problems with the extending door handle, the magazine said.

Tesla's Model X SUV remained "Much Worse Than Average" with ongoing problems, including with the falcon-wing doors and center display screen. The Model 3 sedan, seen as key to Tesla's profitability, debuted with "Average" reliability.

In May, Consumer Reports recommended the Model 3 after its latest tests showed a software update improved the car's braking. It has maintained that rating.

Mazda registered the biggest gain, by nine spots. Acura moved up six spots.

Aside from Tesla, the biggest drops in the rankings were by Buick, down 11; Chrysler, down seven; Honda, down six; Volvo, down six; and Chevrolet, down five.

The brand rankings:

1. Lexus
2. Toyota
3. Mazda
4. Subaru
5. Kia
6. Infiniti
7. Audi
8. BMW
9. Mini
10. Hyundai
11. Porsche
12. Genesis
13. Acura
14. Nissan
15. Honda
16. Volkswagen
17. Mercedes-Benz
18. Ford
19. Buick
20. Lincoln
21. Dodge
22. Jeep
23. Chevrolet
24. Chrysler
25. GMC
26. Ram
27. Tesla
28. Cadillac
29. Volvo

Reporting by Ben Klayman

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