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Tesla’s Model 3 safety claims and the NHTSA’s scrutiny: A look at an old (revived) story

The Tesla Model 3 gets crash tested by the National Highway Traffic Safety Administration. [Credit: NHTSA]

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Multiple reports have recently emerged about the US National Highway Traffic Administration scrutinizing Tesla and the company’s claims that the Model 3 has the lowest probability of injury among vehicles tested by the agency. It should be noted that the NHTSA’s scrutiny, which involved a cease-and-desist letter to Tesla and a prompt response from the automaker, transpired last October, following the agency’s release of the Model 3’s 5-Star Safety Rating. 

The NHTSA’s reaction to Tesla recently came to fore due to documents shared by staunch TSLA critic and transparency group Plainsite, which was able to access both the NHTSA’s cease-and-desist letter to Tesla as well as the electric car maker’s response to the agency thanks to a Freedom of Information Act request. What’s quite peculiar about the new string of reports, including those from Bloomberg and Reuters, is that they highlight the NHTSA’s allegations about the company’s alleged misleading claims about the Model 3, but not Tesla’s response arguing that it used the agency’s own data to arrive at its conclusions. 

To get an accurate picture of this story, one must look at the full cease-and-desist letter sent by the NHTSA to Tesla, as well as the entire contents of the electric car maker’s response. A copy of each letter will be embedded in this article, to provide a full account of the two parties’ correspondence.

Following Tesla’s release of its blog post stating that the Model 3 has the lowest probability of injury among the vehicles tested by the NHTSA, the agency sent the Silicon Valley-based company a cease-and-desist letter. Addressed to Elon Musk, the letter claimed that Tesla had “issued a number of misleading statements regarding the recent Government 5-Star Ratings of the Tesla Model 3.” NHTSA Chief Counsel Jonathan Morrison, who sent the letter, further argued that statements such as “lowest probability of injury in all cars” are inaccurate and not in the best interests of consumers. 

The NHSTA’s cease-and-desist letter to Tesla could be accessed below. 

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Tesla Model 3 Safety Claims… by Simon Alvarez on Scribd

Tesla disagreed with the NHTSA’s allegations in its response to the cease-and-desist letter. The electric car maker argued that its statements about the Model 3’s safety were neither untrue nor misleading, especially since the company used the NHTSA’s own data (which could be accessed here) when it stated that the electric sedan, as well as its largest siblings, the Model S and Model X, have the lowest probability of injury among vehicles tested by the agency. Tesla also noted that the Model 3’s achievement is “exactly what NHTSA intended with the NCAP — to encourage manufacturers to continuously immprove safety.” With this in mind, Tesla noted that there was no reason to discontinue its blog post highlighting the Model 3’s safety. 

Tesla’s full response to the NHTSA could be read below. 

Tesla Model 3 Safety Claims… by Simon Alvarez on Scribd

It should be noted that the NHTSA has not doubled down on its allgetations against Tesla’s statements about the Model 3. The electric car maker’s blog post explaining the Model 3’s stellar safety scores is still active today. Contrary to Plainsite’s statements that Tesla was “referred to the FTC for repeatedly lying about the safety of their vehicles,” it appears that the NHTSA opted to back down from its allegations once the electric car maker explained the rationale behind its statements about the Model 3.

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The Model 3 has since gained perfect 5-Star Safety Ratings from the Euro-NCAP and the ANCAP, with both safety agencies lauding the vehicle for being one of the safest cars on the road. Following the vehicle’s crash tests, Matthew Avery, head of research at Thatcham Research, which conducts the crash tests with the Euro NCAP,  noted that “Tesla has done a great job of playing the structural benefits of an electric vehicle to its advantage. The Tesla Model 3 achieved one of the highest Safety Assist scores we have seen to date.” These sentiments were echoed by ANCAP Chief Executive Officer James Goodwin, who noted that it was “great to see electric vehicles continuing to prioritize safety. It is encouraging to see Tesla give equal attention to the active safety systems and technologies on board as well as the safety fundamentals through the structure and restraints.”

H/T to Vladimir Grinshpun.

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 just got a weird price target boost from a notable bear

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Credit: Tesla Manufacturing

Tesla stock (NASDAQ: TSLA) just got a weird price target boost from a notable bear just a day after it announced its strongest quarter in terms of vehicle deliveries and energy deployments.

JPMorgan raised its price target on Tesla shares from $115 to $150. It maintained its ‘Underweight’ rating on the stock.

Despite Tesla reporting 497,099 deliveries, about 12 percent above the 443,000 anticipated from the consensus, JPMorgan is still skeptical that the company can keep up its momentum, stating most of its Q3 strength came from leaning on the removal of the $7,500 EV tax credit, which expired on September 30.

Tesla hits record vehicle deliveries and energy deployments in Q3 2025

The firm said Tesla benefited from a “temporary stronger-than-expected industry-wide pull-forward” as the tax credit expired. It is no secret that consumers flocked to the company this past quarter to take advantage of the credit.

The bump will need to be solidified as the start of a continuing trend of strong vehicle deliveries, the firm said in a note to investors. Analysts said that one quarter of strength was “too soon to declare Tesla as having sustainably returned to growth in its core business.”

JPMorgan does not anticipate Tesla having strong showings with vehicle deliveries after Q4.

There are two distinct things that stick out with this note: the first is the lack of recognition of other parts of Tesla’s business, and the confusion that surrounds future quarters.

JPMorgan did not identify Tesla’s strength in autonomy, energy storage, or robotics, with autonomy and robotics being the main focuses of the company’s future. Tesla’s Full Self-Driving and Robotaxi efforts are incredibly relevant and drive more impact moving forward than vehicle deliveries.

Additionally, the confusion surrounding future delivery numbers in quarters past Q3 is evident.

Will Tesla thrive without the EV tax credit? Five reasons why they might

Tesla will receive some assistance from deliveries of vehicles that will reach customers in Q4, but will still qualify for the credit under the IRS’s revised rules. It will also likely introduce an affordable model this quarter, which should have a drastic impact on deliveries depending on pricing.

Tesla shares are trading at $422.40 at 2:35 p.m. on the East Coast.

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Investor's Corner

Tesla Q3 deliveries expected to exceed 440k as Benchmark holds $475 target

Tesla stock ended the third quarter at $444.72 per share, giving the EV maker a market cap of $1.479 trillion at the end of Q3 2025. 

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tesla-model-y-giga-texas-logo
(Credit: Tesla)

Benchmark has reiterated its “Buy” rating and $475 price target on Tesla stock (NASDAQ: TSLA) as the company prepares to report its third-quarter vehicle deliveries in the coming days. 

Tesla stock ended the third quarter at $444.72 per share, giving the EV maker a market cap of $1.479 trillion at the end of Q3 2025. 

Benchmark’s estimates

Benchmark analyst Mickey Legg noted that he expects Tesla’s deliveries to hit around 442,000 vehicles this Q3, which is under the 448,000-unit consensus but still well above the 384,000 vehicles that the company reported in Q2 2025. According to the analyst, some optimistic estimates for Tesla’s Q3 deliveries are as high as mid-460,000s.

“Tesla is expected to report 3Q25 global production and deliveries on Thursday. We model 442,000 deliveries versus ~448,000 for FactSet consensus with some high-side calls in the mid-460,000s. A solid sequential uptick off 2Q25’s ~384,000, a measured setup into year-end given a choppy incentive/pricing backdrop,” the analyst wrote.

Benchmark is not the only firm that holds an optimistic outlook on Tesla’s Q3 results. Deutsche Bank raised its own delivery forecast to 461,500, while Piper Sandler lifted its price target to $500 following a visit to China to assess market conditions. Cantor Fitzgerald also reiterated an “Overweight” rating and $355 price target for TSLA stock.

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Stock momentum meets competitive headwinds

Tesla’s anticipated Q3 results are boosted in part by the impending expiration of the federal EV tax credit in the United States, which analysts believe has encouraged buyers to finalize vehicle purchases sooner, as noted in an Investing.com report.

Tesla shares have surged nearly 30% in September, raising expectations for a strong delivery report. Benchmark warned, however, that some volatility may emerge in the coming quarter.

“With the stock up sharply into the print (roughly ~28-32% in September), its positioning raises the bar for an upside surprise to translate into further near-term strength; we also see risk of volatility if regional mix or ASPs underwhelm. We continue to anticipate policy-driven choppiness after 3Q as certain EV incentives/credits tighten or roll off in select markets, potentially creating 4Q demand air pockets and order-book lumpiness,” the analyst wrote.

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Elon Musk slams ING Deutschland for denying TSLA shareholders ability to vote

Musk posted his criticism of the firm in a post on social media platform X. 

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Elon Musk has slammed ING Deutschland after the bank confirmed that it was not offering a way for clients to vote in the upcoming 2025 Tesla Annual Shareholders Meeting.

Musk posted his criticism of the firm in a post on social media platform X. 

Musk’s criticism

Musk’s criticism of ING Deutschland came as a response to the bank’s comment to a Tesla shareholder. The shareholder, Maximilian Auer, noted that he has not received a response from the German bank’s customer support on how he could vote with his TSLA shares. In response to the Auer’s comment, ING Deutschland confirmed that it does not offer such a service.

“We do not offer the proxy voting process or the transmission of a control number. There is no legal obligation to do so for general meetings under foreign law,” ING Deutschland wrote in its post.

The firm’s reply received a lot of criticism from users on X, with many stating that such comments could drive clients away. Elon Musk later weighed in with some strong words of his own, stating that the bank is effectively denying shareholders the ability to vote. “Denying shareholders the ability to vote, as you are doing, certainly should be a crime,” Musk wrote in a post on X.

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Tesla’s annual meeting

Tesla’s upcoming annual meeting this year is particularly important as shareholders are voting on the approval of Elon Musk’s new CEO performance award. The pay package, which could pave the way for Musk to become a trillionaire, is also designed to increase his stake in the electric vehicle maker to 25%. This, Musk stated, should prevent activist shareholder advisory firms to disrupt the company.

Tesla highlighted the importance of this year’s annual meeting in a post on X. 

“We pay for outstanding performance – not for promises. In 2018, shareholders approved a groundbreaking CEO Performance Award that delivered extraordinary value. At our Annual Meeting on November 6, Tesla shareholders can vote on a pay-for-performance plan designed to drive our next era of transformational growth and value creation. Seven years ago, Elon Musk had to deliver billions to shareholders – now it’s trillions.

“This plan creates a path for Elon to secure voting rights and will retain him as a leader of the company for many years to come. But as explained below, Elon only receives voting rights after he has delivered economic value to you. Your vote matters. Vote ‘FOR’ Proposal 4!” Tesla wrote in its post on X. 

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