Investor's Corner
Tesla Model 3 earns flawless 5-Star safety rating from NHTSA
Joining its larger siblings, the Tesla Model 3 has been given a 5-Star Safety Rating by the National Highway Traffic Safety Administration (NHTSA). The NHTSA tested the Model 3 on frontal crash, side crash, and rollover safety; and in all the categories and subcategories of the organization’s tests, the Model 3 performed superbly, displaying a level of industry-leading driver and passenger safety.
The NHTSA’s Recommended Safety Technologies, such as forward collision warning systems, dynamic brake support, crash imminent braking, and lane departure warning features, were also standard on the Model 3. Following are the results from the NHTSA’s safety tests on the Model 3.
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- The Tesla Model 3’s ratings from the National Highway Traffic Safety Administration. [Credit: NHTSA]
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- The Tesla Model 3’s ratings from the National Highway Traffic Safety Administration. [Credit: NHTSA]
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- The Tesla Model 3’s ratings from the National Highway Traffic Safety Administration. [Credit: NHTSA]
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- The Tesla Model 3’s ratings from the National Highway Traffic Safety Administration. [Credit: NHTSA]
The Tesla Model 3’s ratings from the National Highway Traffic Safety Administration. [Credit: NHTSA]
With the Model 3 getting its official NHTSA score, Tesla now holds the distinction of being an automaker whose entire lineup of production vehicles have 5-Star safety ratings. Just like the Model 3, the Tesla Model X received perfect scores in all of the NHTSA’s frontal crash, side crash, and rollover tests. Back in 2013, the Tesla Model S performed so well during the NHTSA’s testing, the vehicle ended up breaking the organization’s crash-testing gear.
Even before the release of the NHTSA’s official ratings for the Model 3, Elon Musk has been lauding the electric sedan’s safety features. In a post last month on Twitter, Musk noted that the absence of a fossil fuel-powered engine in the Model 3 gives the car longer crumple zones. Musk also pointed out that the Model 3 has the “best safety of any midsize car.”
-->Such statements seem to be acknowledged by a number of Model 3 accidents this year, including a high-speed crash on the I-90 tunnel in Seattle, WA resulting from what appeared to be a street race between a BMW M4 and a Chevrolet Camaro SS. A Model 3 involved in a head-on collision at 60 mph earlier this year also resulted in the driver walking away with just a swollen ankle.
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- The Tesla Model 3 gets crash tested by the National Highway Traffic Safety Administration. [Credit: NHTSA]
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- The Tesla Model 3 gets crash tested by the National Highway Traffic Safety Administration. [Credit: NHTSA]
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- The Tesla Model 3 gets crash tested by the National Highway Traffic Safety Administration. [Credit: NHTSA]
The Tesla Model 3 gets crash tested by the National Highway Traffic Safety Administration. [Credit: NHTSA]
Back in May, the Insurance Institute for Highway Safety (IIHS), a nonprofit funded by auto insurers dedicated to reducing the number of accidents on the road, also gave the Model 3 a “Superior” front crash avoidance rating. During its tests, the Model 3 performed particularly well in the crash avoidance and mitigation category, thanks to the vehicle’s Forward Collision Warning, its low-speed autobrake, and its high-speed autobrake systems.
This is not to say that the Model 3’s safety ratings have flawless from the beginning. Consumer Reports initially denied the Model 3 its coveted “Recommended” rating due to the vehicle’s variance in braking distances, which Tesla promptly addressed through an over-the-air software update. Consumer Reports later retested the Model 3, giving it a “Recommended” rating.
The Model 3’s all-electric design is a key factor in its safety ratings. Since the vehicle does not have a front-mounted engine and rear-mounted gas tank, as can be found on fossil fuel-powered cars, the Model 3 has extra large crumple zones that absorb energy during high-speed collisions. Tesla’s use of ultra-high-strength steel and aluminum for the Model 3’s body structure, as well as the vehicle’s floor-mounted battery pack, provide further structural rigidity to the electric sedan.
-->Watch the Model 3’s safety tests in the videos below.
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Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
-->“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
-->Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
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