Will Fires Harm Tesla’s Top Owner-Satisfaction Rating?

By Paul Ausick Updated Apr 28, 10:32AM EDT · Published Nov 21, 9:10AM EST

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Out of 350,000 owner satisfaction surveys compiled by Consumer Reports magazine for its annual owner-satisfaction study, about 600 were completed by owners of the Tesla Motors Inc. (NASDAQ: TSLA) Model S sedan. Those 600 owners are very happy, with 99% saying they definitely would buy the car again, the highest score that Consumer Reports has seen in years.

In the magazine’s own testing of the car, the Model S received an overall score of 99 out of 100, leading the reviewers to say that the car “is not only the best electric car we’ve tested, it’s now our top-rated model overall.”

The three recent battery fires in the cars may not have an impact on current owners. One of the drivers whose car caught fire after hitting a piece of debris has said that he would buy another one immediately. The Consumer Reports owner-satisfaction survey was conducted last spring, before the fires occurred.

As Consumer Reports points out:

[V]ehicles that inspire the strongest loyalty are ones that are fun to drive, deliver great fuel economy, are fashionably green, or envelop you in a high-tech, luxurious driving environment.

That describes the Model S almost perfectly. And what about other carmakers? The next highest-rated car is the Porsche Boxster with 95%, and the Chevy Volt from General Motors Co. (NYSE: GM) tied for third with the Porsche 911, garnering a rating of 91%. Those were the only other cars to get a rating above 90%. The Volt was the top finisher in both of the past two surveys.

The National Highway Traffic Safety Administration (NHTSA) initiated an investigation into the Model S fires on Tuesday, a day after Tesla’s CEO Elon Musk asked for it in a company blog post, saying the company wanted to circumvent a “false perception about the safety of electric cars.” None of the accidents involving the Model S resulted in any injuries.

When someone pays nearly $90,000 for a Tesla Model S, it will take a lot for that buyer to say that the car is not perfect, much less not satisfactory. And a self-selected sample of 600 is hardly decisive. But unless the NHTSA uncovers a serious design flaw in the Model S, do not expect the car’s owners to be less than wildly satisfied with their purchases.

Tesla shares were trading up about 1.4% in Thursday’s premarket to $122.75, after losing 4% Wednesday. The stock’s 52-week range is $31.52 to $194.50. That high was set on September 30, just days before the first fire was reported.

About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.