Tesla Motors Inc (TSLA) Could Take a Lesson From This Gas Hog

Tesla Motors Inc (TSLA) Autopilot

Tesla Motors Inc might have better days ahead as reports suggests that Americans buy the brands of cars they love without giving much thought to ratings or reviews. One would find it somewhat unusual for U.S. car buyers to ignore the reports of quality rating surveys but this in fact appears to be the case as recent sales data for Jeep shows. The results of a study released by J.D. Power’s vehicle dependability survey and the Consumer Reports recently show that Jeep makes “bad” cars; yet, the brand is the fastest selling vehicle brand in the U.S.

Perhaps, Tesla Motors is next in the line of iconic brands to gain from this new trend of strange consumer reaction to poor quality ratings. Unlike Jeep, Tesla has enjoyed consistent good ratings and users are madly in love with its cars. Hence, it is safe to assume that Tesla’s sales should fare better going forward even though the Consumer Reports recently pulled its rating on Tesla.

Americans disregard Jeep’s poor quality ratings

Jeep is ready to claim the title of fastest-growing car brand in the U.S. for the second-straight year. The brand has more than one million units sold in 2014. A number of analysts including Michelle Krebs, an automobile analyst with Autotrader.com, have attempted to explain why car buyers consistently opt to buy Jeep in absolute disregard for its poor quality ratings from Consumer Reports.

Krebs said Jeep is so unique that people of all ages aspire to own one without giving a second thought to its poor quality ratings. More so, the availability of credit line, cheap fuel and modern technology have all deepened the love of many American auto shoppers who show renewed interest for sport utility vehicles like Jeep and other trucks.

Analysts expect automakers’ October report for car and light-truck sales to rise by at least 10 percent to 1.41 million vehicles. More so, they expect Jeep to lead other brands by 31 percent gain in sales for Oct. The decent sales number that Jeep is showing contrasts with the normal market belief that car buyers would avoid buying cars that have lemon feel to them.

Tesla Once Beat Consumer Reports

Tesla Motors has made a big impact on the auto world since it launched its Tesla Roadster. The firm has gone on to dazzle the market with the Model S, and the Model X has raised the bar on what is possible with EVs even higher.

Tesla Motors’ Model S P85D variant recently beat the Consumer Reports with 103 percent quality rating. The Model X might soon break new records because even Elon Musk has admitted that he has gone too far in building the Model X.

The market won’t be quick to forget that the Consumer Report has pulled its previous rating; yet, the recent downgrade shouldn’t hurt Tesla Motors auto business if consumers’ recent behavior as seen in their renewed interest in Jeep is anything to reckon with.

The Tesla Motors Model S P85D was found to be perfect from every measurable perspective. Model S buyers seem to think that the car is perfect, and it is doubtful that Tesla Motors can make its cars as fast as it sells them.

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Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.


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