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Tesla is making progress on fixing a big problem with the Model 3 and Model S that put it at odds with Consumer Reports

Tesla Model 3
A Tesla Model 3. Hollis Johnson/Business Insider
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Consumer Reports now recommends Tesla's Model 3 and Model S sedans because the vehicles have become more reliable, the consumer-advocacy organization said on Thursday. 

Tesla moved up in the organization's ranking of the most reliable auto brands, from 27th out of 28 in the last ranking to 23rd out of 30 in the current one. Consumer Reports measures reliability by analyzing survey responses from vehicle owners who are asked to list the problems their vehicle has had in the past year and whether they were serious.

Consumer Reports does not recommend the electric-car maker's Model X SUV, which is still among the least reliable vehicles included in its survey.

Tesla's rise in the ranking suggests the company's production quality, which has long been an issue, is improving. A Bloomberg survey of Model 3 owners pointed to a similar conclusion, as defects reported by new owners fell 44% between the third quarter of last year and the third quarter of this year, with reported issues reaching their lowest point in the 21-month period analyzed by Bloomberg in September. 

"The Tesla Model 3 struggled last year as the company made frequent design changes and ramped up production to meet demand," Jake Fisher, the senior director of auto testing at Consumer Reports, said in a press release. "But as the production stabilized, we have seen improvements to the reliability of the Model 3 and S that now allow us to recommend both models."

Fisher added that he expects the reliability of Tesla's vehicles to change in the future given the company's history of quality issues.

Lexus earned the top spot in Consumer Reports' reliability ranking, followed by Mazda and Toyota.

Are you a current or former Tesla employee? Do you have an opinion about what it's like to work there? Contact this reporter at mmatousek@bjinnox.com. You can ask for more secure methods of communication, like Signal or ProtonMail, by email or Twitter direct message.

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I'm a senior transportation reporter at Insider covering electric vehicles, automated-driving technology, and ride-hailing. I joined Insider in October 2017 and previously worked as an intern at the St. Louis Post-Dispatch. I graduated from Washington University in St. Louis with degrees in film and media studies and business economics. You can follow me on Twitter @matousekmark and email me at mmatousek@bjinnox.com.  If you have sensitive information you'd like to share and don't feel comfortable sending it to my work email or via a direct-message on Twitter, you can contact me on the encrypted messaging app Signal at 646-768-4712 or email my encrypted address at mmatousek@protonmail.com. Here's some of my work: Uber insiders are divided over Dara Khosrowshahi's leadership, with some worried the company has become 'boring' and 'confused' about its future Nikola founder Trevor Milton convinced the world he was the next Elon Musk. Insiders say a history of lies brought the billionaire down. 17 hours a day, 7 days a week: Cruise-ship workers describe the grueling conditions they face on the job We talked to 42 insiders about Tesla's factory of the future. They revealed the corners cut to hit ambitious production targets. 70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon Musk Tesla is transforming how cars are sold. But 27 insiders say the company's methods mean slashed pay and living under the constant threat of getting laid off. Uber insiders reveal how DoorDash stole its delivery crown and left Eats in the dust Uber's trying no-meeting Mondays to give employees a break from 'tiring' back-to-back meetings, a leaked email reveals Leaked email reveals a Tesla VP expressed concern about employees coming to work with COVID-19 symptoms Leaked document reveals Nikola flip-flopped on whether it would spend any of its $17 million of customer deposits to fund the Nikola One Insiders reveal Alibaba's Jack Ma sought a partnership with Canoo to build electric delivery vans, but the deal fell flat because the startup couldn't meet his aggressive timeline Leaked email from Elon Musk reveals the Model Y is experiencing production 'challenges' while passing the Model 3 as the top priority at Tesla's US car factory Leaked email and audio reveal Carnival-owned Holland America has struggled to give refunds to some customers Leaked documents reveal the severance packages laid off Carnival UK workers will receive Inside Tesla's overhaul plan for its sales and delivery teams to solve one of its toughest customer challenges