Tesla's Buyback Program Bites the Dust; Consumer Reports Takes on Automaker Over Autosteer

Steph Willems
by Steph Willems

Getting a good price for a used Tesla is now solely up to its owner, after the automaker discontinued a program that allows three-year-old vehicles to be bought back for 50 percent of the purchase price.

Tesla dumped the program on July 1, Reuters reports, allowing the company earmarked for the program for other purposes. The program was created to assure would-be owners of a basic resale value after the Model S entered the marketplace.

With production of the Model 3 just over a year away, the electric automaker has its work cut out for it. Its facilities need investment if the company wants to reach an annual production rate of 500,000 vehicles, and that means it needs to access all available cash.

Tesla’s total liability for the guaranteed resale value program was $1.58 billion as of the end of March. A company spokesperson quoted by Reuters said the program was scrapped to (among other things) “offer a compelling lease and loan program to customers.”

As it hunts for new revenue sources, the automaker is fighting a PR battle with media, advocacy groups and regulators over its semi-autonomous Autopilot system. The fledgling technology contributed to a fatal crash in May, which raised questions about the system’s safety. The National Highway Traffic Safety Administration, National Transportation Safety Board and Securities and Exchange Commission are all looking into various factors surrounding that crash.

Now, Consumer Reports has joined the fray. In a story titled “Tesla’s Autopilot: Too Much Autonomy Too Soon,” the product testing publication accuses the automaker of sending mixed messages about the abilities of the system.

“Consumer Reports experts believe that these two messages — your vehicle can drive itself, but you may need to take over the controls at a moment’s notice — create potential for driver confusion,” the story reads. “It also increases the possibility that drivers using Autopilot may not be engaged enough to to react quickly to emergency situations.”

The publication wants Tesla to disable the automated steering function (“Autosteer”) in its vehicles until the system can verify that a driver’s hands are on the steering wheel. It also asks all automakers to give their automated features “descriptive” names, rather than “exaggerated” and potentially misleading ones.

Other requests of Tesla include testing automated systems fully before offering them in vehicles, and issuing clearer instructions to owners on how to operate the systems safely. (Tesla said it plans to do the latter in the wake of recent crashes.)

Despite the growing call to put a lid on Autopilot, Tesla CEO Elon Musk has said he has no plans to stop offering the feature in new vehicles. If you’re looking for a different take on semi-autonomous driving — one written from the point of view of a driver, not a consumer advocate — TTAC’s Jack Baruth shares his experiences here.

[Image: Tesla Motors]

Steph Willems
Steph Willems

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  • Jthorner Jthorner on Jul 15, 2016

    Back in the good old days of TTAC, we would have a Tesla Death Watch series to enjoy :).

  • Shedkept Shedkept on Jul 15, 2016

    Try trading one in to your local MB, BMW, GM, Lexus, Toyota etc. dealer.

  • Jpolicke In a communist dictatorship, there isn't much export activity that the government isn't aware of. That being the case, if the PRC wanted to, they could cut the flow of fentanyl down to a trickle. Since that isn't happening, I therefore assume Xi Jinping doesn't want it cut. China needs to feel the consequences for knowingly poisoning other countries' citizens.
  • El scotto Oh, ye nattering nabobs of negativism! Think of countries like restaurants. Our neighbors to the north and south are almost as good and the service is fantastic. They're awfully close to being as good as the US. Oh the Europeans are interesting and quaint but you really only go there a few times a year. Gents, the US is simply the hottest restaurant in town. Have to stand in line to get in? Of course. Can you hand out bribes to get in quicker? Of course. Suppliers and employees? Only the best on a constant basis.Did I mention there is a dress code? We strictly enforce it. Don't like it? Suck it.
  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
  • Lorenzo Heh. The major powers, military or economic, set up these regulators for the smaller countries - the big guys do what they want, and always have. Are the Chinese that unaware?
  • Lorenzo The original 4-Runner, by its very name, promised something different in the future. What happened?
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