Sometimes, you just cannot keep a good car down, even when that car takes a hit for reliability in German studies. And electric vehicle giant Tesla (TSLA) proved as much, despite being declared the worst car in terms of reliability in the Technischer Uberwachungsverein (TUV) Report 2026. But even with this mark against it, Tesla shares still managed to gain nearly 3% in Wednesday afternoon’s trading.
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The report in question is actually broadly followed throughout Germany and beyond, reports note, and it did not just leave a mark on the Model Y’s mystique, it basically keyed the entire side panel. Not only was it considered the worst in terms of reliability for its entire age group, but it also “…has the highest defect rate of any vehicle tested in the last 10 years.”
The TUV report is actually comprised of multiple mechanical exams, and analyzes the results of 9.5 million vehicle inspections to draw its conclusions. What the report found was even worse: 17.3% of Model Y cars failed standard inspections, a rate of nearly three times the standard failure rate. The Model 3, meanwhile, fared only slightly better, coming in at the third-to-last spot with a 13.1% failure rate. Suspension components and brakes are the biggest points of failure.
The Chargers Don’t Help Much
Worse yet, a report from Central Florida suggests that the chargers may not be much better. Firefighters in Sanford suspect that a house fire was started by a Tesla charging station. The fire started around five in the morning, with the homeowner reporting “popping and crackling” sounds, sounds you generally do not want to hear in a garage containing an electric car.
The bottom of said car was smoking, and black smoke was rapidly filling the garage. The homeowner and family managed to get out safely—even the family dog emerged in one piece, though needed veterinary care—and reports note media have reached out to Tesla to see if they are aware of the fire.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 11 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 19.92% rally in its share price over the past year, the average TSLA price target of $383.04 per share implies 13.16% downside risk.
