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Tesla hit with major setback as popular model tops undesirable list — here's what it means for the automaker

It comes amid turbulent times for the company.

One of Tesla's top-selling cars was named the most unreliable vehicle by a recent report.

Photo Credit: iStock

When you buy a pre-owned car that's only a few years old, you expect it to be in good condition. A new report shows that one of Tesla's top-selling cars is not in tip-top shape. The Auto Blog reported that Germany's AutoBild TÜV Report 2026 showed that the Tesla Model Y topped the unreliable list. 

What's happening?

The list consists of vehicles that are two to three years old. The Model Y had a 17.3% defect rate, which was related to its braking system, lighting equipment, and suspension. The report road tested "216 popular used car models," per TÜV. 

It's been a decade since the Model Y received such a bad reliability rate. It even scored worse than the Model 3, which had had the worst score for two years in a row. 

Tesla is no stranger to defects, as it recently settled a lawsuit involving its Autopilot system. A Model Y crashed into a police car while in Autopilot in 2020. The system did not alert the driver to the police car. Tesla didn't admit fault, but it was one of four cases it settled with. 


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All of this comes as Tesla's Model Y had record-breaking sales for the third quarter. These sales were an improvement on Tesla's first quarter, where it saw a 71% drop in net income, according to CNBC

Why is Tesla's rating concerning?

Buying an electric vehicle can help you save up to $1,500 a year on gas and maintenance. Buying a used one is a great way to save some money up front. However, when Tesla's vehicles receive bad reliability ratings, it's going to deter people from buying EVs. 

Additionally, driving an EV is better for the environment, as it doesn't release as much polluting gas as a gas-powered vehicle. According to a study conducted by a UC Berkeley professor in the San Francisco Bay area, as more people switched to EVs, toxic gases decreased by 1.8% annually.

The professor set up 57 sensors to track polluting gases in the area between 2018 and 2022. 

What's being done about EV adoption?

Luckily, more traditional automakers are making EVs now. So Tesla isn't your only option. Per Auto Blog's reporting, "The Fiat 500e topped the small electric car category" for reliability. 

Additionally, Volkswagen recently announced the T-Roc SUV hybrid model. It's one of its most popular models, and it's going to come in a hybrid option. The car maker also has several EV options, including ID.3, a hatchback, ID.4, an SUV, ID.7, a sedan, ID.5, a small SUV, and more. 

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