Investor's Corner
Tesla’s Model 3 safety claims and the NHTSA’s scrutiny: A look at an old (revived) story
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.
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.
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.
Investor's Corner
Tesla receives major institutional boost with Nomura’s rising stake
The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Tesla (NASDAQ:TSLA) has gained fresh institutional support, with Nomura Asset Management expanding its position in the automaker.
Nomura boosted its Tesla holdings by 4.2%, adding 47,674 shares and bringing its total position to more than 1.17 million shares valued at roughly $373.6 million. The move makes Tesla Nomura’s 10th-largest holding at about 1% of its entire portfolio.
Institutional investors and TSLA
Nomura’s filing was released alongside several other fund updates. Brighton Jones LLC boosted its holdings by 11.8%, as noted in a MarketBeat report, and Revolve Wealth Partners lifted its TSLA position by 21.2%. Bison Wealth increased its Tesla stake by 52.2%, AMG National Trust Bank increased its position in shares of Tesla by 11.8%, and FAS Wealth Partners increased its TSLA holdings by 22.1%. About 66% of all outstanding Tesla shares are now owned by institutional investors.
The buying comes shortly after Tesla reported better-than-expected quarterly earnings, posting $0.50 per share compared with the $0.48 consensus. Revenue reached $28.10 billion, topping Wall Street’s $24.98 billion estimate. Despite the earnings beat, Tesla continues to trade at a steep premium relative to peers, with a market cap hovering around $1.34 trillion and a price-to-earnings ratio near 270.
Recent insider sales
Some Tesla insiders have sold stock as of late. CFO Vaibhav Taneja sold 2,606 shares in early September for just over $918,000, reducing his personal stake by about 21%. Director James R. Murdoch executed a far larger sale, offloading 120,000 shares for roughly $42 million and trimming his holdings by nearly 15%. Over the past three months, Tesla insiders have collectively sold 202,606 shares valued at approximately $75.6 million, as per SEC disclosures.
Tesla is currently entering its next phase of growth, and if it is successful, it could very well become the world’s most valuable company as a result. The company has several high-profile projects expected to be rolled out in the coming years, including Optimus, the humanoid robot, and the Cybercab, an autonomous two-seater with the potential to change the face of roads across the globe.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
Investor's Corner
Ron Baron states Tesla and SpaceX are lifetime investments
Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Billionaire investor Ron Baron says he isn’t touching a single share of his personal Tesla holdings despite the recent selloff in the tech sector. Baron, one of Tesla’s longest-standing bulls, reiterated that his personal stake in the company remains fully intact even as volatility pressures the broader market.
Baron doubles down on Tesla
Speaking on CNBC’s Squawk Box, Baron stated that he is largely unfazed by the market downturn, describing his approach during the selloff as simply “looking” for opportunities. He emphasized that Tesla remains the centerpiece of his long-term strategy, recalling that although Baron Funds once sold 30% of its Tesla position due to client pressure, he personally refused to trim any of his personal holdings.
“We sold 30% for clients. I did not sell personally a single share,” he said. Baron’s exposure highlighted this stance, stating that roughly 40% of his personal net worth is invested in Tesla alone. The legendary investor stated that he has already made about $8 billion from Tesla from an investment of $400 million when he started, and believes that figure could rise fivefold over the next decade as the company scales its technology, manufacturing, and autonomy roadmap.
A lifelong investment
Baron’s commitment extends beyond Tesla. He stated that he also holds about 25% of his personal wealth in SpaceX and another 35% in Baron mutual funds, creating a highly concentrated portfolio built around Elon Musk–led companies. During the interview, Baron revisited a decades-old promise he made to his fund’s board when he sought approval to invest in publicly traded companies.
“I told the board, ‘If you let me invest a certain amount of money, then I will promise that I won’t sell any of my stock. I will be the last person out of the stock,’” he said. “I will not sell a single share of my shares until my clients sold 100% of their shares. … And I don’t expect to sell in my lifetime Tesla or SpaceX.”
Watch Ron Baron’s CNBC interview below.
@teslarati :rotating_light: This is why you need to use off-peak rates at Tesla Superchargers! #tesla #evcharging #fyp ♬ Blue Moon – Muspace Lofi
Elon Musk
‘You chose ambition’: Tesla Chair hails shareholders for backing Elon Musk’s vision
Denholm stated that the vote highlighted TSLA investors’ continued confidence in both Musk’s leadership and Tesla’s vision for an autonomous, AI-driven future.
Tesla Chair Robyn Denholm has issued a letter to shareholders celebrating what she described as “overwhelming support” at this year’s Annual Meeting, framing the approval of Elon Musk’s trillion-dollar pay plan as a defining moment in Tesla’s mission.
Denholm stated that the vote highlighted TSLA investors’ continued confidence in both Musk’s leadership and Tesla’s vision for an autonomous, AI-driven future.
Denholm hails shareholder confidence
In her letter, which was posted by the electric vehicle maker on X through Tesla’s official handle, Denholm thanked investors for backing Proposals One, Three, and Four, items she said reaffirm Tesla’s “Master Plan Part IV” and its broader mission to accelerate sustainable prosperity. She characterized the shareholder vote as “a vote of confidence in our visionary leader, Elon,” crediting Musk with transforming Tesla into one of the most valuable companies in history.
“In a year when many tried to sow doubt and negativity, you chose a better future,” Denholm wrote. “You chose ambition. You chose to see what is possible. You chose to back the people who have been in the room since the earliest days, fighting for the mission that first brought us all together—a better world for humanity,” she wrote in her letter.
Her comments framed Musk’s pay package approval not only as a governance milestone but as a symbolic endorsement of Tesla’s long-term trajectory across autonomy, AI, and energy innovation.
“A whole new book” of innovation
Denholm highlighted Tesla’s push toward autonomy as the company’s next major growth phase, citing the Robotaxi program and Optimus humanoid robot as examples of bringing artificial intelligence “into the physical world.” She described this period as potentially “the largest value-creation event in Tesla’s history, and quite possibly in the history of humanity.”
The letter reaffirmed the board’s commitment to direct engagement with shareholders through Tesla’s online platform and live events. Denholm emphasized that feedback from investors “informs our strategy and strengthens us” as Tesla prepares for new technology rollouts and expanded AI capabilities.
“You, our shareholders, have given us the mandate and the runway to execute. We are humbled, and rest assured that we do not take that responsibility lightly… Thank you for believing in Tesla. Thank you for standing with us. We look forward to years of bold leadership and pioneering innovation, fueled by our commitment to creating a better future for all,” she wrote.
Tesla receives major institutional boost with Nomura’s rising stake
Tesla rolls out fresh Supercharger pricing strategy to more locations
Tesla Robotaxi was just spotted in a new state for the first time
-
News1 week agoTesla shares rare peek at Semi factory’s interior
-
Elon Musk1 week agoTesla says texting and driving capability is coming ‘in a month or two’
-
News1 week agoTesla makes online ordering even easier
-
News1 week agoTesla Model Y Performance set for new market entrance in Q1
-
News1 week agoTesla Cybercab production starts Q2 2026, Elon Musk confirms
-
News1 week agoTesla is launching a crazy new Rental program with cheap daily rates
-
News1 week agoTesla China expecting full FSD approval in Q1 2026: Elon Musk
-
News2 weeks agoTesla Model Y Performance is rapidly moving toward customer deliveries