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Don’t Use Autopilot, it’s Illegal! Tesla Motors Inc (NASDAQ:TSLA) Hears From Hong Kong

Tesla motors inc (NASDAQ:TSLA) Tesla Model 3

Tesla Motors Inc took a hit from Consumer Reports last month when the board reversed its earlier vote of confidence in the Tesla Model S. Earlier in August, Tesla’s Model S P85D scored 103% to beat the highest 100% score for quality. The report said “The all-wheel-drive Tesla Model S P85D sedan performed better in our tests than any other car ever has, breaking the Consumer Reports Ratings system.”

Tesla Motors Inc (TSLA) Autopilot Display

A few weeks later, Consumer Reports reversed its earlier rating on Tesla because owners have concerns indicating trouble with reliability. Tesla Motors’ CEO, Elon Musk didn’t take to long to address some of the concerns that a lowering of the ratings might have caused. He tweeted that the “survey includes a lot of early production cars. Already addressed in new cars.” He goes on to post another tweet saying, “Tesla gets top rating of any company in service. Most important, CR says 97% of owners expect their next car to be a Tesla (the acid test)”.

Hong Kong doesn’t trust Autopilot

Tesla Motors is getting rave reviews on the autopilot update that it released on the Model S. Autopilot helps drivers to change lanes, park the car, steer the car, and avoid collisions among other things – thanks to sensors, cameras, and radar. Tesla’s autopilot had a warm welcome on U.S. roads Elon Musk seems to get getting some traction for the global push of the feature.

However, it doesn’t appear as if regulators in Hong Kong are ready to have computers take over the wheels from humans on the streets of Hong Kong. South China Morning Post reports that it is still ILLEGAL to engage Model S autopilot on Hong Kong roads. In fact, James To Kun-sun, a member legislative council was quoted saying, “If the driver is using the car with such unapproved software, then he is committing an offence”. Someone from the insurance sector also hinted that insurance firms “would not cover accident costs since the software update had yet to obtain legislative approval.”

Tesla has solved reliability issues

Tesla says it has solved about half of the issues that caused the buyers of its cars concerns about reliability. For instance, during the Q3 earnings calls, the firm noted that it was working on increasing the lifespan of its drive trains from 200,000 miles to 1 million miles. Now, the firm is making a bolder statement about the work it has done to make its cars more reliable.

Tesla Motors in a new email that was sent to potential buyers diffused some of the tension about the reliability of its cars. The firm says, feedback from buyers have helped it fix issues ranging from braking noise to fit and finish and interiors. The firm boldly says, “In the last 12 months alone we’ve decreased reliability issues by half”. The firm went on to mention that its commitment to fixing issues as soon as they are raised is the main reason ” 97% of Tesla owners expect their next car to be a Tesla”.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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