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Tesla Model 3 headlights gain the IIHS’ elusive ‘Good’ rating after design update

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Earlier this year, the Insurance Institute for Highway Safety (IIHS), a nonprofit organization dedicated to reducing the number of accidents and injuries on the road, awarded the Tesla Model 3’s headlights with an “Acceptable” rating. While the IIHS’ tests gave a “Superior” rating for the vehicle’s front crash avoidance features then, the safety organization only listed the vehicle’s headlights as “Acceptable,” due to glaring issues from the Model 3’s low beams.

In a recent Twitter announcement, though, the IIHS noted that the Tesla Model 3 now earns a “Good” rating for its standard LED reflector headlights. The IIHS stated that the vehicle’s improved, updated score reflects the headlights of Model 3 that were produced after June 2018, a time when Tesla was starting to hit its stride with the production of the electric sedan.

The IIHS’ updated results could be seen in the Model 3’s page on the nonprofit’s website. So far, though, the IIHS has not released the Model 3’s official full safety ratings, which include metrics such as “Roof Strength” and “LATCH ease of use.”

The Tesla Model 3’s updated headlights score is displayed on the IIHS’ website. (Credit: IIHS)

That said, the Model 3’s “Good” rating for its headlights says a lot about Tesla’s focus on designing an incredibly safe electric car. The IIHS, after all, utilizes one of the strictest metrics for testing headlights. The headlights of the Tesla Model S, for one, were given a “Poor” rating by the IIHS. The Chevy Bolt EV’s headlights, which are incredibly bright, were also rated as “Poor.”

The IIHS evaluates headlights based on the lamps’ reach as the vehicle travels on straight and curved lines. Low beams are measured on five approaches — straightaways, left and right curves on an 800-foot radius, and sharp left and right curves on a 500-foot radius. The IIHS weighs low beams more heavily than high beams since they are used more often when driving. During the Model 3’s initial tests earlier this year, the vehicle’s low beams exhibited a 15.2% glare during straightways, preventing the Model 3 from earning the IIHS’ “Good” rating. As noted by the IIHS, this particular issue was addressed in Model 3 produced after Q2 2018.

The updated score of the Model 3’s headlights highlights Tesla’s unique tendency to update its vehicles as soon as improvements are available. This was pointed out by Elon Musk on Twitter, when he stated that when it comes to Tesla’s electric cars, there is “no such thing as a full refresh” since all vehicles are “partially upgraded every month as soon as a new subsystem is ready for production.” This practice was also mentioned by Tesla President of Automotive Jerome Guillen in an interview with CNBC, when he noted that the company’s technology is always in a process of evolution.

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In a statement to CNET, IIHS senior vice president for communications Russ Rader explained the organization’s focus on headlights as a metric for vehicle safety. Rader also noted that headlights must be seen not just as a decorative component of a vehicle. Instead, they should be perceived as safety equipment.  

“When one vehicle’s low beams only illuminate the right side of a straightaway for 148 feet, and another vehicle’s low beams allow a driver to see more than twice as far, there’s a problem. IIHS has incorporated headlight performance into our Top Safety Pick awards. We’re already seeing manufacturers make improvements, especially tightening up aim at the factory. Headlights shouldn’t just be about what looks cool. They’re important safety equipment. When they perform well, they can help drivers spot trouble sooner and avoid a crash.”

Apart from the IIHS, the Model 3 is also gaining accolades from other safety organizations. The National Highway Traffic Safety Administration (NHTSA), for one, has given the Model 3 a flawless 5-Star Safety Rating. The organization tested the Model 3 on frontal crash, side crash, and rollover safety; and in all categories and subcategories, the electric car displayed a level of industry-leading driver and passenger safety. As highlighted by Tesla in a following blog post, the scores of the Model 3 from the NHTSA’s tests place the electric car as the vehicle with the “lowest probability of injury” among all cars tested by the NHTSA to date.

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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 analysts are expecting the stock to go Plaid Mode soon

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Credit: Tesla Mania

Tesla (NASDAQ: TSLA) has had a few weeks of overwhelmingly bullish events, and it is inciting several analysts to change their price targets as they expect the stock to potentially go Plaid Mode in the near future.

Over the past week, Tesla has not only posted record deliveries for a single quarter, but it has also rolled out its most robust Full Self-Driving (Supervised) update in a year. The new version is more capable than ever before.

Tesla Full Self-Driving v14.1 first impressions: Robotaxi-like features arrive

However, these are not the only things moving the company’s overall consensus on Wall Street toward a more bullish tone. There are, in fact, several things that Tesla has in the works that are inciting stronger expectations from analysts in New York.

TD Cowen

TD Cowen increased its price target for Tesla shares from $374 to $509 and gave the stock a ‘Buy’ rating, based on several factors.

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Initially, Tesla’s positive deliveries report for Q3 set a bullish tone, which TD Cowen objectively evaluated and recognized as a strong sign. Additionally, the company’s firm stance on ensuring CEO Elon Musk is paid is a positive, as it keeps him with Tesla for more time.

Elon Musk: Trillionaire Tesla pay package is about influence, not wealth

Musk, who achieved each of the tranches on his last pay package, could obtain the elusive title as the world’s first-ever trillionaire, granted he helps Tesla grow considerably over the next decade.

Stifel

Stifel also increased its price target on Tesla from $440 to $483, citing the improvements Tesla made with its Full Self-Driving suite.

The rollout of FSD v14.1 has been a major step forward for the company. Although it’s in its early stages, Musk has said there will be improved versions coming within the next two weeks.

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Stifel raises Tesla price target by 9.8% over FSD, Robotaxi advancements

Analysts at the firm also believe the company has a chance to push an Unsupervised version of FSD by the end of the year, but this seems like it’s out of the question currently.

It broke down the company’s FSD suite as worth $213 per share, while Robotaxi and Optimus had a $140 per share and $29 per share analysis, respectively.

Stifel sees Tesla as a major player not only in the self-driving industry but also in AI as a whole, which is something Musk has truly pushed for this year.

UBS

While many firms believe the company is on its way to doing great things and that stock prices will rise from their current level of roughly $430, other firms see it differently.

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UBS said it still holds its ‘Sell’ rating on Tesla shares, but it did increase its price target from $215 to $247.

It said this week in a note to investors that it adjusted higher because of the positive deliveries and its potential value with AI and autonomy. However, it also remains cautious on the stock, especially considering the risks in Q4, as nobody truly knows how deliveries will stack up.

In the last month, Tesla shares are up 24 percent.

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Investor's Corner

Stifel raises Tesla price target by 9.8% over FSD, Robotaxi advancements

Stifel also maintained a “Buy” rating for the electric vehicle maker.

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Credit: Tesla China

Investment firm Stifel has raised its price target for Tesla (NASDAQ:TSLA) shares to $483 from $440 over increased confidence in the company’s self-driving and Robotaxi programs. The new price target suggests an 11.5% upside from Tesla’s closing price on Tuesday.

Stifel also maintained a “Buy” rating despite acknowledging that Tesla’s timeline for fully unsupervised driving may be ambitious.

Building confidence

In a note to clients, Stifel stated that it believes “Tesla is making progress with modest advancements in its Robotaxi network and FSD,” as noted in a report from Investing.com. The firm expects unsupervised FSD to become available for personal use in the U.S. by the end of 2025, with a wider ride-hailing rollout potentially covering half of the U.S. population by year-end.

Stifel also noted that Tesla’s Robotaxi fleet could expand from “tiny to gigantic” within a short time frame, possibly making a material financial impact to the company by late 2026. The firm views Tesla’s vision-based approach to autonomy as central to this long-term growth, suggesting that continued advancements could unlock new revenue streams across both consumer and mobility sectors.

https://twitter.com/AIStockSavvy/status/1975893527344345556

Tesla’s FSD goals still ambitious

While Stifel’s tone remains optimistic, the firm’s analysts acknowledged that Tesla’s aggressive autonomy timeline may face execution challenges. The note described the 2025 unsupervised FSD target as “a stretch,” though still achievable in the medium term.

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“We believe Tesla is making progress with modest advancements in its Robotaxi network and FSD. The company has high expectations for its camera-based approach including; 1) Unsupervised FSD to be available for personal use in the United States by year-end 2025, which appears to be a stretch but seems more likely in the medium term; 2) that it will ‘probably have ride hailing in probably half of the populations of the U.S. by the end of the year’,” the firm noted.

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Investor's Corner

Cantor Fitzgerald reaffirms bullish view on Tesla after record Q3 deliveries

The firm reiterated its Overweight rating and $355 price target.

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(Credit: Tesla)

Cantor Fitzgerald is maintaining its bullish outlook on Tesla (NASDAQ:TSLA) following the company’s record-breaking third quarter of 2025. 

The firm reiterated its Overweight rating and $355 price target, citing strong delivery results driven by a rush of consumer purchases ahead of the end of the federal tax credit on September 30.

On Tesla’s vehicle deliveries in Q3 2025

During the third quarter of 2025, Tesla delivered a total of 497,099 vehicles, significantly beating analyst expectations of 443,079 vehicles. As per Cantor Fitzgerald, this was likely affected by customers rushing at the end of Q3 to purchase an EV due to the end of the federal tax credit, as noted in an Investing.com report. 

“On 10/2, TSLA pre-announced that it delivered 497,099 vehicles in 3Q25 (its highest quarterly delivery in company history), significantly above Company consensus of 443,079, and above 384,122 in 2Q25. This was due primarily to a ‘push forward effect’ from consumers who rushed to purchase or lease EVs ahead of the $7,500 EV tax credit expiring on 9/30,” the firm wrote in its note.

A bright spot in Tesla Energy

Cantor Fitzgerald also highlighted that while Tesla’s full-year production and deliveries would likely fall short of 2024’s 1.8 million total, Tesla’s energy storage business remains a bright spot in the company’s results.

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“Tesla also announced that it had deployed 12.5 GWh of energy storage products in 3Q25, its highest in company history vs. our estimate/Visible Alpha consensus of 11.5/10.9 GWh (and vs. ~6.9 GWh in 3Q24). Tesla’s Energy Storage has now deployed more products YTD than all of last year, which is encouraging. We expect Energy Storage revenue to surpass $12B this year, and to account for ~15% of total revenue,” the firm stated. 

Tesla’s strong Q3 results have helped lift its market capitalization to $1.47 trillion as of writing. The company also teased a new product reveal on X set for October 7, which the firm stated could serve as another near-term catalyst.

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