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Tesla Model 3 receives Top Safety Pick+ award from the IIHS
The Insurance Institute for Highway Safety (IIHS) has released the results of its crash tests for the Tesla Model 3, and just like other safety agencies in the US and abroad, the organization has granted the all-electric sedan its highest rating available. In a recent announcement, the IIHS has revealed that the Tesla Model 3 qualifies for its Top Safety Pick+ award.
The IIHS notes that to earn the Top Safety Pick+ award, a vehicle must get good ratings in the driver-side small overlap front, moderate overlap front, side, roof strength, and head restraint tests. Good ratings are also required in the passenger-side small overlap test and the headlight evaluation, the latter proving to be a tricky metric that is rarely aced by carmakers.
The Model 3 earned good ratings across the board for crashworthiness, with the vehicle’s front crash prevention system getting a superior rating after successfully avoiding collisions in both the 12 mph and 25 mph track tests. The Model 3’s strong frame also allowed the vehicle to perform well in challenging tests such as the driver-side small overlap front test. Additionally, the Model 3’s headlights received a good rating for being bright enough without causing glare to other drivers.
With its results, the Tesla Model 3 joins the all-electric Audi e-tron and the hydrogen-powered Hyundai Nexo as the IIHS’ Top Safety Pick+ vehicles for 2019. Speaking about these results, IIHS Chief Research Officer David Zuby remarked that the stellar safety performance of these vehicles proves that cars with alternative powertrains do not compromise in terms of safety. “Vehicles with alternative powertrains have come into their own. There’s no need to trade away safety for a lower carbon footprint when choosing a vehicle,” he said.
In a blog post, Tesla explained that the Model 3’s Top Safety Pick+ rating from the IIHS is due to the vehicle’s all-electric structural and powertrain design, which gives the car a low center of gravity that reduces rollover risk while protecting occupants in the event of a crash. Of course, the absence of an engine results in a generous crumple zone in front of the Model 3, which absorbs energy more effectively during a collision. The Model 3’s glass roof also proved very strong, resisting more than 20,000 pounds of force.
Apart from receiving the IIHS’ Top Safety Pick+ rating, the Tesla Model 3 has also earned a 5-Star Safety Rating from the National Highway Traffic Safety Administration (NHTSA). The all-electric sedan also set new benchmarks in safety at its tests with the European New Car Assessment Program (Euro NCAP), as well as the Australasian New Car Assessment Program (ANCAP).
Watch the IIHS’s featurette on the Tesla Model 3’s stellar safety results in the video below.
Read Tesla’s blog post about the IIHS’ Top Safety Pick+ award for the Model 3 below.
Model 3 Earns the 2019 IIHS TOP SAFETY PICK+ Award
We engineer our cars to be the best in the world – in every category. Model 3, our most affordable car yet, is no exception. From the start, we designed it to be among the safest cars ever built, with the goal of getting as many Model 3s on the road as possible to further our mission.
Model 3 has already earned a 5-star safety rating in every category and sub-category from safety authorities on three continents (North America, Europe and Australia), and it has received top marks around the world for its advanced safety assistance features like Automatic Emergency Braking.
Now, in new tests from the Insurance Institute for Highway Safety (IIHS), Model 3 has been named a 2019 IIHS TOP SAFETY PICK+ vehicle, the highest achievement awarded by the Institute. To evaluate whether Model 3 met the criteria for this top rating, IIHS tested the car’s crashworthiness, occupant protection, crash avoidance, and headlight systems. Model 3 earned top marks in all eight tests, including a superior rating in front crash prevention, which evaluates a car’s Automatic Emergency Braking system, and the highest possible rating in IIHS’ headlight assessment.
Here’s a look at some of the ways we made this happen:
Part of what makes Model 3 so safe is its all-electric powertrain design, which gives the car a low center of gravity that reduces roll-over risk, as well as its rigid aluminum and steel passenger cabin that provides exceptional strength to equally protect drivers and passengers. Additionally, Model 3’s lack of an engine is replaced by a large crumple zone that helps it absorb energy more effectively than a gas car would, dissipating force away from the passenger cabin. This crumple zone contributed to Model 3’s top rating in IIHS’ frontal crash protection tests.
The Institute’s results also demonstrate the exceptional strength of Model 3’s all-glass roof, which is supported by a very strong metal body structure and helps protect occupants in roll-over crashes. During testing, the car’s roof was able to successfully resist more than 20,000 pounds of force – that’s more than if we placed five Model 3s on top of the car’s roof at once. And, the roof earned a higher strength-to-weight ratio score than any other fully electric vehicle that IIHS has ever tested.
In addition, Model 3’s safety restraint system also earned high marks in IIHS’ evaluation. This was due in part to Model 3’s seats, which are designed and manufactured in-house at our dedicated seat factory in Fremont, as well as our thick curtain airbag and uniquely shaped front passenger airbag, which help protect a passenger’s head from the car’s A-pillar and center screen.
In terms of crash mitigation, good headlights can help prevent nighttime crashes, which is why Model 3 comes standard with automatic high and low beam headlights that earned top marks in IIHS testing. And, when it comes to crash prevention, Model 3 earned a superior rating thanks to our Automatic Emergency Braking system, which successfully avoided collisions at both 12 miles per hour and 25 miles per hour.
The safety of our customers is what matters most, which is why our active safety features and passive safety equipment come standard on all of our cars. We’re also committed to making our cars even safer over time via over-the-air updates, helping us ensure that all Tesla drivers have access to the best safety features available for their cars.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
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Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
