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Tesla Model 3 earns flawless 5-Star safety rating from NHTSA

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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. 

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.”

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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.

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.

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Watch the Model 3’s safety tests in the videos below.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Investor's Corner

Tesla could save $2.5B by replacing 10% of staff with Optimus: Morgan Stanley

Jonas assigned each robot a net present value (NPV) of $200,000.

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Credit: Tesla Optimus/X

Tesla’s (NASDAQ:TSLA) near-term outlook may be clouded by political controversies and regulatory headwinds, but Morgan Stanley analyst Adam Jonas sees a glimmer of opportunity for the electric vehicle maker. 

In a new note, the Morgan Stanley analyst estimated that Tesla could save $2.5 billion by replacing just 10% of its workforce with its Optimus robots, assigning each robot a net present value (NPV) of $200,000.

Morgan Stanley highlights Optimus’ savings potential

Jonas highlighted the potential savings on Tesla’s workforce of 125,665 employees in his note, suggesting that the utilization of Optimus robots could significantly reduce labor costs. The analyst’s note arrived shortly after Tesla reported Q2 2025 deliveries of 384,122 vehicles, which came close to Morgan Stanley’s estimate and slightly under the consensus of 385,086.

“Tesla has 125,665 employees worldwide (year-end 2024). On our calculations, a 10% substitution to humanoid at approximately ($200k NPV/humanoid) could be worth approximately $2.5bn,” Jonas wrote, as noted by Street Insider.

Jonas also issued some caution on Tesla Energy, whose battery storage deployments were flat year over year at 9.6 GWh. Morgan Stanley had expected Tesla Energy to post battery storage deployments of 14 GWh in the second quarter.

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Musk’s political ambitions

The backdrop to Jonas’ note included Elon Musk’s involvement in U.S. politics. The Tesla CEO recently floated the idea of launching a new political party, following a poll on X that showed support for the idea. Though a widely circulated FEC filing was labeled false by Musk, the CEO does seem intent on establishing a third political party in the United States. 

Jonas cautioned that Musk’s political efforts could divert attention and resources from Tesla’s core operations, adding near-term pressure on TSLA stock. “We believe investors should be prepared for further devotion of resources (financial, time/attention) in the direction of Mr. Musk’s political priorities which may add further near-term pressure to TSLA shares,” Jonas stated.

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Two Tesla bulls share differing insights on Elon Musk, the Board, and politics

Two noted Tesla bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

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Credit: Tesla

Two noted Tesla (NASDAQ:TSLA) bulls have shared differing views on the recent activities of CEO Elon Musk and the company’s leadership.

While Wedbush analyst Dan Ives called on Tesla’s board to take concrete steps to ensure Musk remains focused on the EV maker, longtime Tesla supporter Cathie Wood of Ark Invest reaffirmed her confidence in the CEO and the company’s leadership.

Ives warns of distraction risk amid crucial growth phase

In a recent note, Ives stated that Tesla is at a critical point in its history, as the company is transitioning from an EV maker towards an entity that is more focused on autonomous driving and robotics. He then noted that the Board of Directors should “act now” and establish formal boundaries around Musk’s political activities, which could be a headwind on TSLA stock. 

Ives laid out a three-point plan that he believes could ensure that the electric vehicle maker is led with proper leadership until the end of the decade. First off, the analyst noted that a new “incentive-driven pay package for Musk as CEO that increases his ownership of Tesla up to ~25% voting power” is necessary. He also stated that the Board should establish clear guidelines for how much time Musk must devote to Tesla operations in order to receive his compensation, and a dedicated oversight committee must be formed to monitor the CEO’s political activities.

Ives, however, highlighted that Tesla should move forward with Musk at its helm. “We urge the Board to act now and move the Tesla story forward with Musk as CEO,” he wrote, reiterating its Outperform rating on Tesla stock and $500 per share price target.

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Tesla CEO Elon Musk has responded to Ives’ suggestions with a brief comment on X. “Shut up, Dan,” Musk wrote.

Cathie Wood reiterates trust in Musk and Tesla board

Meanwhile, Ark Investment Management founder Cathie Wood expressed little concern over Musk’s latest controversies. In an interview with Bloomberg Television, Wood said, “We do trust the board and the board’s instincts here and we stay out of politics.” She also noted that Ark has navigated Musk-related headlines since it first invested in Tesla.

Wood also pointed to Musk’s recent move to oversee Tesla’s sales operations in the U.S. and Europe as evidence of his renewed focus in the electric vehicle maker. “When he puts his mind on something, he usually gets the job done,” she said. “So I think he’s much less distracted now than he was, let’s say, in the White House 24/7,” she said.

TSLA stock is down roughly 25% year-to-date but has gained about 19% over the past 12 months, as noted in a StocksTwits report.

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Cantor Fitzgerald maintains Tesla (TSLA) ‘Overweight’ rating amid Q2 2025 deliveries

Cantor Fitzgerald is holding firm on its bullish stance for the electric vehicle maker.

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Credit: Tesla China

Cantor Fitzgerald is holding firm on its bullish stance for Tesla (NASDAQ: TSLA), reiterating its “Overweight” rating and $355 price target amidst the company’s release of its Q2 2025 vehicle delivery and production report. 

Tesla delivered 384,122 vehicles in Q2 2025, falling below last year’s Q2 figure of 443,956 units. Despite softer demand in some countries in Europe and ongoing controversies surrounding CEO Elon Musk, the firm maintained its view that Tesla is a long-term growth story in the EV sector.

Tesla’s Q2 results

Among the 384,122 vehicles that Tesla delivered in the second quarter, 373,728 were Model 3 and Model Y. The remaining 10,394 units were attributed to the Model S, Model X, and Cybertruck. Production was largely flat year-over-year at 410,244 units.

In the energy division, Tesla deployed 9.6 GWh of energy storage in Q2, which was above last year’s 9.4 GWh. Overall, Tesla continues to hold a strong position with $95.7 billion in trailing twelve-month revenue and a 17.7% gross margin, as noted in a report from Investing.com.

Tesla’s stock is still volatile

Tesla’s market cap fell to $941 billion on Monday amid volatility that was likely caused in no small part by CEO Elon Musk’s political posts on X over the weekend. Musk has announced that he is forming the America Party to serve as a third option for voters in the United States, a decision that has earned the ire of U.S. President Donald Trump. 

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Despite Musk’s controversial nature, some analysts remain bullish on TSLA stock. Apart from Cantor Fitzgerald, Canaccord Genuity also reiterated its “Buy” rating on Tesla shares, with the firm highlighting the company’s positive Q2 vehicle deliveries, which exceeded its expectations by 24,000 units. Cannacord also noted that Tesla remains strong in several markets despite its year-over-year decline in deliveries.

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