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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.
Elon Musk has firmly denied recent media reports suggesting that SpaceX has reduced its target valuation for an upcoming initial public offering.
The denial came directly from the SpaceX and Tesla frontman on his social media platform X, where he responded with a single word, “False,” to a post from ZeroHedge that cited Bloomberg sources.
This swift rebuttal underscores Musk’s ongoing effort to manage speculation surrounding one of the most anticipated market debuts in recent history.
False
— Elon Musk (@elonmusk) May 29, 2026
According to the disputed reports, SpaceX had lowered its IPO valuation goal to at least $1.8 trillion from previous ambitions exceeding $2 trillion.
The claims emerged amid growing anticipation for the company’s confidential S-1 filing, which positions it for a potential public listing as early as June.
Some had pointed to strong revenue growth, particularly from the Starlink satellite internet service, which contributed heavily to the firm’s 2025 figures of $18.7 billion. Yet challenges persist in other areas, including substantial investments and losses tied to ambitious projects like Starship development and artificial intelligence initiatives, which plan to make life multiplanetary eventually.
Musk’s response highlights a pattern in which he actively counters what he views as inaccurate portrayals of his companies’ trajectories.
SpaceX, already valued privately at extraordinary levels, stands as a cornerstone of Musk’s empire alongside Tesla and xAI. The entrepreneur has long emphasized the transformative potential of reusable rockets and global broadband access, factors that fuel investor enthusiasm despite operational hurdles.
By rejecting the valuation downgrade narrative, Musk signals confidence in SpaceX’s fundamentals and its readiness for public markets on terms favorable to its long-term vision. People have been waiting a very long time to invest in SpaceX, and the valuation, as well as the introductory share price, is not going to need adjusting.
They’ll have plenty of suitors.
This episode reflects broader dynamics in the technology sector, where rumors often swirl around high-profile entities. Musk’s direct engagement with media narratives serves to maintain transparency and control the narrative around his ventures.
As SpaceX prepares for greater scrutiny in public markets, the founder’s denial reinforces optimism about its prospects. Supporters argue that the company’s innovative edge positions it for enduring success, far beyond short-term valuation debates. With the denial now public, attention turns to forthcoming regulatory filings that could provide clearer insights into SpaceX’s strategy and financial health.
The coming weeks promise to reveal more about how SpaceX will transition into a publicly traded powerhouse.
Tesla’s dreams of operating a fully autonomous ride-hailing platform just took a massive step toward reality, as two separate events have indicated the company is perhaps closer than ever to achieving self-driving as a product.
On Thursday, Tesla was granted authorization by the State of Texas to operate driverless vehicles in a commercial manner. On May 28, Senate Bill 2807, passed by the 89th Texas Legislature, took effect after being passed back on September 1, 2025.
The bill establishes a statewide regulatory framework requiring authorization from the Texas Department of Motor Vehicles for companies to operate automated vehicles commercially on Texas roads.
This covers driverless, or SAE Level 4+, operations for passenger transport, meaning Robotaxi, or freight.
Tesla and other companies can self-certify their vehicles and tech as long as they:
- Operate in compliance with Texas traffic laws
- Maintain proper registration, title, and insurance
- Use compliant automated driving systems
- Record onboard activity and handle system failures and glitches safely.
The new authorization, which was first reported by James Stephenson on X, allows companies to utilize their own processes to determine if their vehicles are ready to operate without drivers.
🚨BREAKING:
Tesla has been authorized by the State of Texas to operate driverless vehicles commercially under the new law that took effect today, May 28th, 2026. Tesla has officially self-certified the software running on its robotaxis as Level 4. $TSLA pic.twitter.com/KSJdsvlaW5— James Stephenson (@ICannot_Enough) May 28, 2026
It is a rule that expedites the entire approval process, keeping agencies out of a usually long, lengthy, and frustrating task that is essential to technological advancements. It essentially means Tesla can launch commercial Robotaxi operations at this point.
On the very same day, Tesla continued the momentum as CEO Elon Musk shared a video of Cybercab units autonomously driving off the property at Gigafactory Texas. This is a major step in the story of the Cybercab.
Mass production of the Cybercab started at Giga Texas in April, and it is already heading out of the factory on its own.
Cybercab driving itself out of the GigaTexas factory pic.twitter.com/EwAMVVDjYy
— Elon Musk (@elonmusk) May 28, 2026
These two major events mark a drastic step forward in Tesla’s progress toward Cybercab and the permissions it needs to operate a self-driving ride-hailing service. Tesla is now able to operate autonomously under Texas law by self-certifying, and with the potentially imminent rollout of Cybercab, Tesla’s autonomous dreams are starting to take serious shape.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk strikes down reports on SpaceX IPO rumors
Tesla’s Robotaxi dreams just took a massive step toward reality
