Consumer Reports Will Have Zero Impact on Tesla (TSLA) Model S/Model X Sales - Global Equities
Global Equities Research is out with commentary on Tesla Motors (Nasdaq: TSLA) following a negative Consumer Reports report on Tuesday.
Analyst Trip Chowdhry noted that the firm has been following Tesla since 2009, personally knows about 50 Model S owners, and has observed over 4,000 Tesla owners.
The overall message from Chowdhry is that the Consumer Reports piece will have zero impact on Model S and Model X sales. The analyst noted that once a person drives a Tesla, they'll never go back to an internal combustion engine again, based on feedback.
Tesla consumers also know that Tesla's fit-and-finish is sub-par at this point, so some of what Consumer Reports said is no surprise. Chowdhry noted, About 2 years back, we saw one executive, entering into his Tesla Model S at Intuit's parking lot, through the window...I asked him..what's wrong with the car, he said, the door don't open, some software glitch, may get fixed in a few days....I said... you are looking like an idiot entering the car through the Window...he said, yes I know, but ...you know..once you drive Tesla, you will not like driving anything else....
Chowdhry noted:
- We personally know of about 50 Tesla Owners, and over the period, each one of them has helped sell, 2 to 8 Tesla Model S cars over the period they have owned
- Tesla sales occur because of word of mouth from current Tesla owners, and not because of Consumer Reports or other reviewers
For an analyst ratings summary and ratings history on Tesla Motors click here. For more ratings news on Tesla Motors click here.