The Experience of Buying a Tesla (TSLA) Stinks: New Study - TheStreet

The Tesla (TSLA) - Get Report customer experience is thus far mixed and remains a top concern for the company as it continues to launch its Model 3, according to data from Bernstein analyst Toni Sacconaghi released Tuesday.

Bernstein surveyed 286 Tesla owners and found they faced "a myriad of service and quality issues during the Model X launch." If those Model X concerns carry over to the Model 3, Tesla could face brand damage and the potential of cancelled Model 3 orders. About 70% of Model 3 reservation holders surveyed said they are "likely" or "very likely" to take the delivery of their car.

But Bernstein found Tesla owners are still fanatical about their cars, suggesting the brand's cult-like following is one of its strongest assets. Much of the customer base are electric vehicle "believers/converts" who aren't likely to ever return to traditional internal combustion engine vehicles.

Sacconaghi said Bernstein continues to "discourage investors from chasing the stock at its current levels," as near-term execution issues with the Model 3 could outweigh Tesla's competitive advantage in the growing electric vehicle market. 

Tesla stock was down 1.3% to $341.12 in mid-morning trading Tuesday.

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