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Tesla Model 3 gets penalized in Europe despite top scores in vehicle assistance and safety
In collaboration with Thatcham Research, the Euro NCAP has launched the world’s first Assisted Driving Grading system, a new set of metrics that are specifically designed to evaluate the driver-assist systems of cars available on the market today. For its first batch of vehicles, the firms evaluated 10 cars, from premium SUVs like the Mercedes-Benz GLE to affordable hatchbacks like the Renault Clio to all-electric vehicles like the Tesla Model 3.
As noted by Thatcham Research Director of Insurance Research Matthew Avery in a video outlining the results of the Assisted Driving Grading system’s first tests, vehicles would be graded on three metrics: the level of vehicle assistance that they provide, the level of driver engagement that they offer, and the effectiveness of their safety backup systems. The results of these tests, especially on the Tesla Model 3’s part, were rather peculiar, to say the least.
Out of 10 vehicles that were evaluated, the Tesla Model 3 ranked 6th with a “Moderate” grade, falling behind the Mercedes-Benz GLE, BMW 3-Series, and Audi Q8, which were graded as “Very Good,” and the Ford Kuga, which received a “Good” rating. This was despite the Tesla Model 3 receiving the top scores in the “Vehicle Assistance” and “Safety Backup” metrics.
The study, for example, dubbed the Model 3 as outstanding in terms of steering assistance, with the vehicle steering itself exceptionally well through an S-shaped curve at speeds of 80, 100, and 120 km/h. Tesla’s lane change systems were also satisfactory, despite the system’s limitations in Europe. Distance control was dominated by the Model 3 as well, with the evaluators stating that Tesla’s adaptive cruise control featured a “high level of technical maturity.” From a score of 100, Tesla’s vehicle assistance received a score of 87, the highest among the cars tested.
The Model 3’s safety backup systems were also a league above its competition. As noted in a post from the Allgemeiner Deutscher Automobil-Club e.V. (ADAC), Tesla demonstrated its strengths with the Model 3’s collision avoidance systems. The all-electric sedan earned a perfect score in the firms’ tests, outperforming its premium German competition. Overall, the Model 3 received an impressive score of 95 in the Assisted Driving Grading system’s “Safety Backup” metric.
Considering these scores, one might wonder why the Model 3 ended up ranked 6th among the 10 vehicles tested by the Euro NCAP and Thatcham Research. As it turned out, this was because of the Model 3’s poor scores in the “Driver Engagement” metric, where the vehicle only earned a score of 35 out of 100. So poor was the Model 3’s scores in this metric that it was ranked last among the 10 vehicles that were evaluated.
A look at the reasons behind the Model 3’s poor scores in “Driver Engagement” includes a number of interesting insights from Thatcham Research and the Euro NCAP. When testing the vehicles’ steering override functions, for example, the evaluators stated that the Model 3 resisted steering overrides from its driver. These issues were explained in the ADAC’s post.
“Should the driver make a steering movement in order to avoid an object or a pothole in the roadway, the steering assistant should allow this without resistance. In the Tesla Model 3, for example, this is not the case. Apparently, Tesla trusts the system more than its driver. The necessary cooperative assistance is not given. Instead, the Tesla system prevents its driver from attempting to intervene – it mustn’t be,” the ADAC remarked in its post.
Even more interesting is that part of the Model 3’s poor “Driver Engagement” scores was due to the term “Autopilot,” which Tesla uses to describe its driver-assist suite. The evaluators argued that the term “Autopilot” was misleading and irresponsible on Tesla’s part, and this was heavily taken against the Model 3’s rankings in the Assisted Driving Grading system.
“When it comes to the first test criterion – consumer information – the Tesla Model 3 in particular fails. The assistance systems are referred to as “Autopilot” in the operating instructions for the Model 3 as well as in the sales brochures and in marketing. However, the term suggests capabilities that the system does not have in sufficient measure. It tempts the driver to rely on the capabilities of the system – which is currently not allowed by the legislature anyway. Due to its good quick-start operating aid, the Tesla Model 3 still receives 10 points,” the evaluators noted.
Ultimately, these complaints about Autopilot’s branding ended up pulling down the Model 3’s scores to the point where the all-electric sedan was ranked below the Ford Kuga. Thatcham Research Director of Insurance Research Matthew Avery explained this in a video released about the evaluation. “The Tesla Model 3 was the best for safety backup and vehicle assistance but lost ground for misleading consumers about the capability of its Autopilot system and actively discouraging drivers from engaging when behind the wheel,” Avery said.
As noted by Avery, it is pertinent for vehicles to exhibit a balance to score very well in the Assisted Driving Grading system. This was not achieved by the Model 3 despite its industry-leading backup safety systems and actual vehicle assistance tech. ADAC explained it best when outlining why the Tesla Model 3 lost to four other vehicles despite being equipped with what is noticeably the most advanced driver-assist system.
“When analyzing the test results, it is noticeable that the Tesla Model 3 has the most advanced assistance systems. With 95 points for emergency assistance (Safety Backup) and 91 points for technical assistance, it doesn’t beat the Mercedes GLE by far, but at least 11 points… Because Euro NCAP removes the many points in the area of driver support from the Tesla, because on the one hand it does not sufficiently comply with the driver’s request for a steering correction. On the other hand, because Tesla is irresponsible about the term autopilot – an even more serious reason. With only 36 points from the test area driver integration, the Tesla falls back to sixth place in the final bill,” the ADAC noted.
Thatcham Research’s overall findings could be viewed in the video below.
Despite many recent rumors and various reports, Elon Musk confirmed today that SpaceX is not developing a phone based on Starlink, not once, but twice.
Today’s report from Reuters cited people familiar with the matter and stated internal discussions have seen SpaceX executives mulling the idea of building a mobile device that would connect directly to the Starlink satellite constellation.
Musk did state in late January that SpaceX developing a phone was “not out of the question at some point.” However, He also said it would have to be a major difference from current phones, and would be optimized “purely for running max performance/watt neural nets.”
Not out of the question at some point. It would be a very different device than current phones. Optimized purely for running max performance/watt neural nets.
— Elon Musk (@elonmusk) January 30, 2026
While Musk said it was not out of the question “at some point,” that does not mean it is currently a project SpaceX is working on. The CEO reaffirmed this point twice on X this afternoon.
Musk said, “Reuters lies relentlessly,” in one post. In the next, he explicitly stated, “We are not developing a phone.”
Reuters lies relentlessly
— Elon Musk (@elonmusk) February 5, 2026
We are not developing a phone
— Elon Musk (@elonmusk) February 5, 2026
Musk has basically always maintained that SpaceX has too many things going on, denying that a phone would be in the realm of upcoming projects. There are too many things in the works for Musk’s space exploration company, most notably the recent merger with xAI.
SpaceX officially acquires xAI, merging rockets with AI expertise
A Starlink phone would be an excellent idea, especially considering that SpaceX operates 9,500 satellites, serving over 9 million users worldwide. 650 of those satellites are dedicated to the company’s direct-to-device initiative, which provides cellular coverage on a global scale.
Nevertheless, there is the potential that the Starlink phone eventually become a project SpaceX works on. However, it is not currently in the scope of what the company needs to develop, so things are more focused on that as of right now.
Tesla has added a notable improvement to its Dashcam feature after complaints from owners have pushed the company to make a drastic change.
Perhaps one of the biggest frustrations that Tesla owners have communicated regarding the Dashcam feature is the lack of ability to retain any more than 60 minutes of driving footage before it is overwritten.
It does not matter what size USB jump drive is plugged into the vehicle. 60 minutes is all it will hold until new footage takes over the old. This can cause some issues, especially if you were saving an impressive clip of Full Self-Driving or an incident on the road, which could be lost if new footage was recorded.
This has now been changed, as Tesla has shown in the Release Notes for an upcoming Software Update in China. It will likely expand to the U.S. market in the coming weeks, and was first noticed by NotaTeslaApp.
The release notes state:
“Dashcam Dynamic Recording Duration – The dashcam dynamically adjusts the recording duration based on the available storage capacity of the connected USB drive. For example, with a 128 GB USB drive, the maximum recording duration is approximately 3 hours; with a 1 TB or larger USB drive, it can reach up to 24 hours. This ensures that as much video as possible is retained for review before it gets overwritten.”
Tesla Adds Dynamic Recording
Instead of having a 60-minute cap, the new system will now go off the memory in the USB drive. This means with:
- 128 GB Jump Drive – Up to Three Hours of Rolling Footage
- 1TB Jump Drive – Up to 24 Hours of Rolling Footage
This is dependent on the amount of storage available on the jump drive, meaning that if there are other things saved on it, it will take away from the amount of footage that can be retained.
While the feature is just now making its way to employees in China, it will likely be at least several weeks before it makes its way to the U.S., but owners should definitely expect it in the coming months.
It will be a welcome feature, especially as there will now be more customization to the number of clips and their duration that can be stored.
With the news of a merger between SpaceX and xAI being confirmed earlier this week by CEO Elon Musk directly, the first moves of an umbrella company that combines all of the serial tech entrepreneur’s companies have been established.
The move aims to combine SpaceX’s prowess in launches with xAI’s expanding vision in artificial intelligence, as Musk has detailed the need for space-based data centers that will require massive amounts of energy to operate.
It has always been in the plans to bring Musk’s companies together under one umbrella.
“My companies are, surprisingly in some ways, trending toward convergence,” Musk said in November. With SpaceX and xAI moving together, many are questioning when Tesla will be next. Analysts believe it is a no-brainer.
SpaceX officially acquires xAI, merging rockets with AI expertise
Dan Ives of Wedbush wrote in a note earlier this week that there is a “growing chance” Tesla could be merged in some form with the new conglomeration over the next 12 to 18 months.
“In our view, there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The viewis this growing AI ecosystem will focus on Space and Earth together… and Musk will look to combine forces,” Ives said.
Let’s take a look at the potential.
The Case for Synergies – Building the Ultimate AI Ecosystem
A triple merger would create a unified “Musk Trinity,” blending Tesla’s physical AI with Robotaxi, Optimus, and Full Self-Driving, SpaceX’s orbital infrastructure through Starlink and potential space-based computer, and xAI’s advanced models, including Grok.
This could accelerate real-world AI applications, more specifically, ones like using satellite networks for global autonomy, or even powering massive training through solar-optimized orbital data centers.
The FCC welcomes and now seeks comment on the SpaceX application for Orbital Data Centers.
The proposed system would serve as a first step towards becoming a Kardashev II-level civilization and serve other purposes, according to the applicant. pic.twitter.com/TDnUPuz9w7
— Brendan Carr (@BrendanCarrFCC) February 4, 2026
This would position the entity, which could ultimately be labeled “X,” as a leader in multiplanetary AI-native tech.
It would impact every level of Musk’s AI-based vision for the future, from passenger use to complex AI training models.
Financial and Structural Incentives — and Risks
xAI’s high cash burn rate is now backed by SpaceX’s massive valuation boost, and Tesla joining the merger would help the company gain access to private funding channels, avoiding dilution in a public-heavy structure.
The deal makes sense from a capital standpoint, as it is an advantage for each company in its own specific way, addressing specific needs.
Because xAI is spending money at an accelerating rate due to its massive compute needs, SpaceX provides a bit of a “lifeline” by redirecting its growing cash flows toward AI ambitions without the need for constant external fundraising.
Additionally, Tesla’s recent $2 billion investment in xAI also ties in, as its own heavy CapEx for Dojo supercomputers, Robotaxis, and Optimus could potentially be streamlined.
Musk’s stake in Tesla and SpaceX, after the xAI merger, is also uneven. His ownership in Tesla equates to about 13 percent, only increasing as he achieves each tranche of his most recent compensation package. Meanwhile, he owns about 43 percent of the private SpaceX.
A triple merger between the three companies could boost his ownership in the combined entity to around 26 percent. This would give Musk what he wants: stronger voting power and alignment across his ventures.
It could also be a potential facilitator in private-to-public transitions, as a reverse merger structure to take SpaceX public indirectly via Tesla could be used. This avoids any IPO scrutiny while accessing the public markets’ liquidity.
Timeline and Triggers for a Public Announcement
As previously mentioned, Ives believes a 12-18 month timeline is realistic, fueled by Musk’s repeated hints at convergence between his three companies. Additionally, the recent xAI investment by Tesla only points toward the increased potential for a conglomeration.
Of course, there is speculation that the merger could happen in the shorter term, before June 30 of this year, which is a legitimate possibility. While this possibility exists but remains at low probability, especially when driven by rapid AI/space momentum, longer horizons, like 2027 or later, allow for key milestones like Tesla’s Robotaxi rollout and Cybercab ramp-up, Optimus scaling, or regulatory clarity under a favorable administration.
Credit: Grok Imagine
The sequencing matters: SpaceX-xAI merger as “step one” toward a unified stack, with a potential SpaceX IPO setting a valuation benchmark before any Tesla tie-up.
Full triple convergence could follow if synergies prove out.
Prediction markets are also a reasonable thing to look at, just to get an idea of where people are putting their money. Polymarket, for example, sits at between a 12 and 24 percent chance that a Tesla-SpaceX merger is officially announced before June 30, 2026.
Looking Ahead
The SpaceX-xAI merger is not your typical corporate shuffle. Instead, it’s the clearest signal yet that Musk is architecting a unified “Muskonomy” where AI, space infrastructure, and real-world robotics converge to solve humanity’s biggest challenges.
Yet the path is fraught with execution risks that could turn this visionary upside into a major value trap. Valuation mismatches remain at the forefront of this skepticism: Tesla’s public multiples are unlike any company ever, with many believing they are “stretched.” On the other hand, SpaceX-xAI’s private “marked-to-muth” pricing hinges on unproven synergies and lofty projects, especially orbital data centers and all of the things Musk and Co. will have to figure out along the way.
Ultimately, the entire thing relies on a high-conviction bet on Musk’s ability to execute at scale. The bullish case is transformative: a vertically integrated AI-space-robotics giant accelerates humanity toward abundance and multi-planetary civilization faster than any siloed company could.
Elon Musk confirms SpaceX is not developing a phone
Tesla adds notable improvement to Dashcam feature
