Tesla is losing its lead in EV quality

Tesla is losing its lead over older automakers in the quality of its new all-electric vehicles, according to an influential annual survey conducted by J.D. Power.

The 2024 American initial quality study A study has found that the quality of Tesla's battery electric vehicles (BEVs) is equal to that of traditional automakers. 266 problems were reported per 100 new vehicles sold or leased.

Tesla models have previously outperformed electric vehicles from traditional automakers in the annual survey of quality. Last year, the U.S. EV leader earned a rank of 257 problems per 100 vehicles, compared to an average of 265 problems per 100 vehicles for EVs from traditional automakers.

The study attributes Tesla's growing problems to a negative customer response after the company removed traditional controls such as turn signals and wiper levers.

In the broader sector, not just electric vehicles, Tesla has consistently ranked near the bottom in initial quality since JD Power included Tesla in its 2022 study.

The study, which included data on dealer repair visits for the first time, found that electric vehicles, such as BEVs and plug-in hybrid electric vehicles (PHEVs), experience more problems than traditional cars with internal combustion engines that run on petrol or diesel.

“Owners of advanced, technology-packed BEVs and PHEVs are experiencing problems so severe that they are having to take their new vehicle to the dealer at a rate three times that of owners of gasoline-powered vehicles,” says Senior Director of Auto Benchmarking at JD Power Frank Hanley said in a press release.

The research found that plug-in vehicles require more repairs than gasoline-powered vehicles, regardless of repair category.

According to the study, BEVs had an average of 266 problems per 100 vehicles, 86 points higher than gasoline and diesel vehicles, which had an average of 180 problems per 100 vehicles. A lower score indicates higher vehicle quality.

The biggest concerns revolved around features, controls and displays, as well as wireless smartphone integration, as customers often reported issues with Apple CarPlay and Android Auto.

The survey also reported frustration with false warnings, unnecessary traffic alerts and automatic braking functions. Specifically, rear seat reminders cause 1.7 problems per 100 vehicles industrywide, as owners report receiving signals even when no one is in the back seat.

“It's not surprising that the introduction of new technology has challenged manufacturers to maintain vehicle quality,” Hanley said.

— CNBC's Michael Wayland contributed to this report.