Tesla, Rivian, and Polestar perform terribly in J.D. Power Initial Quality Study


Tesla, Rivian, and Polestar performed terribly in J.D. Power’s Initial Quality Study for 2024. Tesla and Rivian outpaced all automakers surveyed except for one, while Polestar’s score was the worst of all brands considered for this year’s report.

J.D. Power said in its report that problems “plagued” the battery electric vehicles as traditional OEMs leveled the playing field.

Frank Hanley, Senior Director of Auto Benchmarking at J.D. Power, said:

“It is not surprising that the introduction of new technology has challenged manufacturers to maintain vehicle quality. “However, the industry can take solace in the fact that some problem areas such as voice recognition and parking cameras are seen as less problematic now than they were a year ago.”

The study from J.D. Power highlighted the claims commonly made by owners and manufacturers of EVs, which indicate that the fewer proponents for these vehicles make them less problematic and less likely to have problems that require repairs.

However, this year’s study included newly incorporated repair data, which showed both BEVs and PHEVs having more repairs than gas-powered vehicles in all categories.

Hanley added:

“Owners of cutting edge, tech-filled BEVs and PHEVs are experiencing problems that are of a severity level high enough for them to take their new vehicle into the dealership at a rate three times higher than that of gas-powered vehicle owners.”

Study Results

Ram was the best-performing brand in this year’s study, having 149 problems per 100 vehicles, which is how J.D. Power gauges initial quality. Chevrolet (160), Hyundai (162), and Kia (163) finished second, third, and fourth, respectively.

The average across the study was 195 problems per 100 vehicles.

That brings us to the performances of Rivian, Tesla, and Polestar. Rivian and Tesla both had 266 problems per 100 vehicles, which was tied for the third-worst behind Dodge (301) and Polestar (316).

All three brands were listed below the actual study results because J.D. Power says they are “not rank eligible because it does not meet study award criteria.”

J.D. Power had this to say about BEVs, specifically Tesla:

“Gas- and diesel-powered vehicles average 180 PP100 this year, while BEVs are 86 points higher at 266 PP100. While there are no notable improvements in BEV quality this year, the gap between Tesla’s BEV quality and that of traditional OEMs’ BEV quality has closed, with both at 266 PP100. In the past, Tesla has performed better, but that is not the case this year, and the removal of traditional feature controls, such as turn signals and wiper stalks, has not been well received by Tesla customers.”

In the past, Tesla has performed well in J.D. Power studies, especially ones pertaining to EV Ownership Experience and in-vehicle tech.

Tesla trifecta dominates JD Power’s 2022 EV Experience Ownership Study

The Lexus LC was listed as the highest initial quality model.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Tesla, Rivian, and Polestar perform terribly in J.D. Power Initial Quality Study





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Tesla ordered to correct air quality violations at Fremont Factory


Tesla has been ordered by the Bay Area Air Quality Management District to correct “ongoing air quality violations” at the Fremont Factory in Northern California.

On Tuesday, the Bay Area Air Quality Management District (BAAQMD) said it “sought the abatement order to stop frequent and ongoing violations from the paint shop operations” at Tesla’s Fremont Factory.

Tesla has received over 112 notices of violations regarding air quality violations since 2019. The BAAQMD said each of the air violations can emit hundreds of pounds of illegal air pollution, with some being frequent and potentially causing a negative impact on public health and the environment.

Tesla sued again over Fremont paint shop emissions

Dr. Philip Fine, Executive Officer at the Air District, said:

“Tesla’s ongoing violations at their Fremont facility pose a risk to public health and air quality in the surrounding community. This order is crucial to ensure that Tesla takes prompt and effective action to stop harmful emissions and comply with all air quality regulations to protect the health of those living near the facility.”

The BAAQMD said Tesla has, in some cases, had its thermal oxidizer or related components of the abatement system break down. This has caused periods of “emissions to automatically be vented directly into the atmosphere without proper abatement as a result.”

It also said Tesla will shut down the abatement system manually when there are problems with other equipment in the paint shop.

Tesla’s Fremont Factory in 2022 (Credit: Tesla)

The agency said it will require Tesla to implement a plan to address the violations in a two-step process:

  • First, hire a third-party consultant to do an evaluation and make recommendations. Tesla must then develop a proposed implementation plan to implement the recommendations, which it will file with the Hearing Board for approval.
  • Second, execute the implementation plan as approved by the Hearing Board to stop the avoidable release of uncontrolled emissions, except where it may be absolutely necessary for safety reasons.

This is not the first time Tesla has been in hot water over air quality at the Fremont Factory. In May 2021, it agreed to pay a $1 million fine and install a solar roof project on top of the production plant as a part of a settlement with the BAAQMD after 33 violations were found.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Tesla ordered to correct air quality violations at Fremont Factory





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Warren Buffett’s Berkshire slashes BYD stake to 5.99%


A Hong Kong Stock Exchange filing has revealed that legendary investor Warren Buffet’s Berkshire Hathaway has trimmed its stake in Chinese New Energy Vehicle (NEV) company BYD even further. With the latest reduction, Berkshire Hathaway now holds less than a 6% stake in BYD. 

As per a report from CNEV Post, Berkshire Hathaway reduced its BYD stake by 2,017,500 shares on June 19, 2024, at an average price of HKD 234.57 ($30) per share, for a total cash out of about HKD 470 million ($60.1 million). This effectively cut the firm’s stake in the NEV maker to just 5.99%. 

Interestingly enough, this is not the first time that Berkshire Hathaway reduced its BYD stake this month. On June 11, just over a week before the firm’s most recent filing, Berkshire cut its stake in BYD by 1,347,500 shares. This reduced Berkshire Hathaway’s BYD stake from 7.02% to 6.9%. At the time, BYD shares were trading at HKD 230.46 per share, so Berkshire was able to cash out HKD 310 million ($39.6 million). 

BYD, for its part, seems to be maintaining an optimistic stance about its operations. When asked about Berkshire Hathaway’s selloff on June 11, sources from BYD reportedly noted that the NEV maker was in good shape. The sources also reportedly noted that BYD is poised to maintain its profits and growth. This is a pretty notable stance considering that BYD has become the world’s largest NEV maker. 

Berkshire Hathaway, through Berkshire Hathaway Energy, invested $230 million in BYD in September 2008. This allowed the firm to acquire 225 million shares of BYD at HKD 8 per share ($1). As noted in a Reuters report, Berkshire Hathaway’s late Vice Chairman, Charlie Munger, led the firm’s investment in BYD. Warren Buffett has given Munger full credit for Berkshire Hathaway’s BYD investment. 

Berkshire Hathaway held its shares in BYD until August 2022, when filings revealed that the firm had sold 1.33 million BYD shares, reducing its stake in the NEV maker from 20.04% to 19.92%. At the time, BYD stock had increased more than 20-fold. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Warren Buffett’s Berkshire slashes BYD stake to 5.99%





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