Tesla Inc.’s Model 3 sedan has lost its "top pick" rating from Consumer Reports following the electric car maker’srecent decisionto drop the radar sensors in favor of a camera-based Autopilot system for its vehicles.
What Happened:Consumer Reports said it no longer lists the Model 3 as a “Top Pick” and added that the Insurance Institute for Highway Safety (IIHS) also plans to remove the Model 3’s “Top Safety Pick+” designation.
The move comes after the National Highway Traffic Safety Administration said that the Tesla Model 3 and Model Y vehicles built on or after April 27 will no longer be labeled as having some advanced safety features due to Tesla’s decision.
Jake Fisher, senior director of Consumer Research’s Auto Test Center, noted that it is extremely rare for an automaker to remove safety features from a vehicle during a production run, but added that it is not the first time Tesla has done this.
Why It Matters:Tesla’s mass-market Model 3 has frequently featured in Consumer Reports “Top Pick” lists. The loss of the ‘top pick" status could impact the vehicle’s sales.
However, Tesla has said that while its vehicles will initially lose some functionality due to the lack of radar, this will be restored through future software updates.
Price Action:Tesla shares closed almost 1.9% higher in Thursday’s regular trading session at $630.85 but declined almost 0.3% in the after-hours session to $629.23.
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