The National Highway Traffic Safety Administration (NHTSA) has asked Tesla to explain why it rolled out a safety enhancement for its Autopilot driver-assist system without issuing a safety-related recall. The Autopilot improvement was rolled out to Tesla’s fleet of vehicles through a free over-the-air update.
The NHTSA is currently probing Tesla’s Autopilot, as well as comparable driver-assist systems from other automakers such as BMW, Honda, Hyundai, Toyota, Ford, Nissan, Setllantis, Kia, Volkswagen, General Motors, Mercedes-Benz, and Subaru. The probe was initiated partly due to several incidents of Teslas on Autopilot crashing into an emergency vehicle parked on the side of the road.
Tesla rolled out a software update that improved Autopilot’s capability to detect and respond to stationary emergency vehicles last month as a free over-the-air update. With the new feature enabled, Teslas like the Model 3 and Model Y gained the ability to slow down once an emergency vehicle was detected. Drivers also heard a chime and saw a reminder to keep their hands on the wheel.
Videos of the feature in action showed that the Autopilot update worked as intended. This, however, seems to have aggravated the NHTSA to some degree.
In a letter to Eddie Gates, Tesla’s director of field quality, an NHTSA official reminded the EV maker that automakers are required to notify the NHTSA of a recall notice within five days if a “safety defect or noncompliance” is identified on their vehicles. The NHTSA asked if Tesla is planning on filing a recall notice for Tesla’s Autopilot update, or if the company is planning on providing a “technical and/or legal basis for declining to do so.”
“As Tesla is aware, the Safety Act imposes an obligation on manufacturers of motor vehicles and motor vehicle equipment to initiate a recall by notifying NHTSA when they determine vehicles or equipment they produced contain defects related to motor vehicle safety or do not comply with an applicable motor vehicle safety standard,” the NHTSA official wrote.
What is quite interesting to note is that the Autopilot update that Tesla rolled out was done not as a response to a “defect” but as a proactive function that makes the company’s vehicles safer on the road. Despite the NHTSA investigation, after all, Tesla’s Autopilot is only involved in a very small fraction of incidents involving stationary emergency vehicles. As per a Government Accountability Office (GAO) report, about 8,000 injuries were reported involving a stationary emergency vehicle in one year.
In comparison, Tesla only accounted for nine crash injuries with first responder vehicles in the past 12 months. Some of those incidents involved drivers who were intoxicated, while some involved drivers who were not paying attention to the road. With this in mind, it appears that the NHTSA’s reaction to a proactively rolled out over-the-air software update is almost tantamount to making mountains out of a molehill.
Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up.
News
Why Tesla’s Q4 performance could shock many after incredible Q3
There is still some residual impact to be felt as we enter Q4, and there is a potential shock coming to many investors as it could be stronger than what many think:

Tesla reported vehicle deliveries and energy deployments for the third quarter of 2025 today, blowing analyst estimations from Wall Street firms completely out of the water with its strongest three-month performance in company history.
The strong performance, which resulted in nearly half a million vehicle deliveries in the quarter, was largely driven by the momentum of the EV tax credit, which expired at the end of September, marking the end of the $7,500 discount that was previously available.
Tesla hits record vehicle deliveries and energy deployments in Q3 2025
This was a massive contributor to Tesla’s record-high in vehicle deliveries, as consumers rushed to take advantage of the credit.
There is still some residual impact to be felt as we enter Q4, and there is a potential shock coming to many investors as it could be stronger than what many think:
EV Tax Credit Deliveries Will Continue Through Q4
Despite the credit’s expiration, people will still be able to take advantage of it because the IRS changed the rules mid-quarter.
Prospective buyers can utilize the credit after September 30 if they place an order for an EV and make a marginal payment on the car.
Tesla’s $250 order deposit qualified as the marginal payment, so as long as the order was submitted before the end of the day on September 30, they could still take delivery in Q4 or even Q1 and still take advantage of the credit.
With the Model Y Performance launching in the U.S. on September 30, that undoubtedly contributed to some orders. However, there are likely many people who ordered in the latter portion of Q3 and have not yet taken delivery. These will all contribute to Q4 delivery figures.
Seasonal Holiday Boost
Tesla traditionally has its strongest quarters in Q4, as the company typically introduces initiatives such as price cuts, incentives, and other offers to close out the year strong.
Car buyers are more likely to jump at these offers as well, as gifts for either themselves or others. What Tesla does in the final quarter of the year is usually boosted by whatever types of offers it can make.
Affordable Model Production Ramp
Tesla is likely preparing for the launch of its affordable model, which is essentially a stripped-down Model Y.
Some rumors have been circulating within the community, indicating that the company is nearing the sale of this vehicle, which is coded within Tesla’s website as the “Model Y Standard.”
🚨 Looks like some coding was found on Tesla’s website that seems to hint the affordable Model Y is coming:
-Named “Model Y Standard”
-$39,990 starting priceInitial thoughts: this is completely unconfirmed, but was really hoping Tesla would get this closer to $30,000 https://t.co/RDR0ypQHB3
— TESLARATI (@Teslarati) October 1, 2025
If Tesla is able to lock in some good pricing on its affordable model, Tesla could see its quarterly figures return to QoQ growth, something that the company has not had in a few years.
News
Tesla hits record vehicle deliveries and energy deployments in Q3 2025
As per Tesla’s Q3 2025 vehicle delivery and production report, the bulk of the company’s numbers came from its mass-market lineup.

Tesla (NASDAQ:TSLA) reported record-breaking results for the third quarter of 2025, producing 447,450 vehicles and delivering 497,099 units worldwide.
The company also deployed 12.5 GWh of energy storage products, setting a new record in its fast-growing energy business.
Model 3/Y domination
As per Tesla’s Q3 2025 vehicle delivery and production report, the bulk of the company’s numbers came from its mass-market lineup. The Model 3 sedan and Model Y crossover accounted for 435,826 units produced and 481,166 delivered in the quarter. This is quite impressive considering that both the Model 3 and Model Y are still premium-priced vehicles with numerous competitors that are significantly more affordable.
Other models, including the Model S, Model X, and Cybertruck, contributed 11,624 vehicles produced and 15,933 delivered. Beyond vehicles, Tesla’s energy business posted its best quarter to date, deploying 12.5 GWh of storage systems.
Q3 2025 earnings call date
Tesla’s third-quarter results are extremely impressive, and they exceed Wall Street’s estimates by a significant margin. As per Benchmark analyst Mickey Legg, who had a delivery estimate of 442,000 vehicles in Q3, Wall Street consensus was at 448,000 units. Even more optimistic analysts estimated that Tesla would only post deliveries in the mid-460,000s.
Investors will gain further insight later this month when Tesla reports full financials for the quarter. The company will release Q3 2025 earnings after market close on October 22, followed by a Q&A webcast at 4:30 p.m. Central Time.
Elon Musk
Elon Musk is halfway towards becoming the world’s first trillionaire
Musk’s fortune remains heavily tied to Tesla, which has rallied nearly 100% since April.

Elon Musk has reached a new milestone by becoming the first individual in history to achieve a net worth of $500 billion. Forbes’ Real-Time Billionaires tracker confirmed the record Wednesday afternoon after Tesla stock gained nearly 4%, adding an estimated $9.3 billion to Musk’s net worth in a single day.
He now sits more than $150 billion ahead of Oracle co-founder Larry Ellison, whose net worth also stands at a very impressive $350 billion.
Tesla stock leads wealth surge
Musk’s fortune remains heavily tied to Tesla, which has rallied nearly 100% since April, when the CEO announced he would step back from outside roles to focus more on the EV maker. The company’s market capitalization is back within 10% of its all-time peak, lifting the value of Musk’s 12% stake to about $191 billion.
Beyond this, his 2018 compensation package, which was rescinded by a Delaware judge last year but is still under appeal, could unlock additional stock worth more than $130 billion if reinstated, Forbes noted. Investors see Musk’s refocused leadership as a stabilizing force for Tesla as it pursues ambitious global growth. Tesla has also proposed a new compensation plan for Musk that could bring the company’s market cap to $8.5 trillion and add an additional $900 billion to the CEO’s net worth.
SpaceX and xAI boost portfolio value
While Tesla drives much of his wealth, Musk’s stakes in SpaceX and xAI have added significant upside to his net worth. SpaceX, his private rocket company, recently hit a $400 billion valuation in a private tender offer, valuing Musk’s 42% stake at $168 billion. Meanwhile, xAI Holdings, which merged with social platform X earlier this year, is worth an estimated $113 billion, giving Musk another $60 billion on paper.
These ventures, combined with Tesla’s resurgence, have pushed Musk’s net worth past the half-trillion-dollar mark and highlighted his reach across multiple industries, from clean energy to space, artificial intelligence, brain implants, and tunneling.
-
Elon Musk1 week ago
Tesla FSD V14 set for early wide release next week: Elon Musk
-
News6 days ago
Elon Musk gives update on Tesla Optimus progress
-
News1 week ago
Tesla has a new first with its Supercharger network
-
News1 week ago
Tesla job postings seem to show next surprise market entry
-
News2 weeks ago
Tesla makes a big change to reflect new IRS EV tax credit rules
-
Investor's Corner7 days ago
Tesla gets new Street-high price target with high hopes for autonomy domination
-
Lifestyle5 days ago
500-mile test proves why Tesla Model Y still humiliates rivals in Europe
-
News4 days ago
Tesla Giga Berlin’s water consumption has achieved the unthinkable