Global Equities' Trip Chowdhry: It's A Known Fact Tesla Has Issues, Calls Reaction To Stock 'Meaningless'

Shares of Tesla Motors Inc (NASDAQ: TSLA) were trading lower by more than 10 percent on Tuesday afternoon. The reason for the fall is Consumer Reports withdrawing its Model S recommendation, citing poor reliability and giving the car a "worse-than-average" rating.

Speaking with Benzinga, Global Equities Research analyst Trip Chowdhry listed three reasons why people buy Tesla cars:

• It's an electric car. It runs quiet and has cutting edge technology.
• It's a beautiful looking product.
• It has a big screen that people enjoy using and like to show-off.

Chowdhry said people are made aware of issues with finished Tesla products. He said the Consumer Reports data is accurate, but clarifies he believes people buy Teslas for the three reasons above and not based on the topics Consumer Reports is highlighting.

Tesla shares were down roughly 10.1 percent at $205 as of 2:06 p.m. EDT.