Tesla’s (NASDAQ:TSLA) ‘Puffs’ Agency Safety Analysis

Tesla’s (NASDAQ:TSLA) ‘Puffs’ Agency Safety Analysis

Tesla’s (NASDAQ:TSLA) ‘Puffs’ Agency Safety Analysis


Tesla (NASDAQ:TSLA) claimed its M3 EV has the lowest risk of occupant injury of any vehicle in US government tests, but the National Highway Traffic Safety Administration (NHTSA) Tuesday said Tesla’s claim goes beyond the scope of its analysis.

The auto safety’s agency’s 5-Star Safety Ratings Program uses three crash tests and a rollover resistance assessment to come up with an overall ranking.

The M3 achieved the Top rating, 5-Stars, on that ranking along with other vehicles including: Volvo S60, Toyota Camry, Honda Accord, Honda Civic, Volkswagen Jetta and Ford Mustang cars.

“NHTSA does not distinguish safety performance beyond the Star rating with 5 Stars being the highest safety rating a vehicle can achieve. Thus, there is no NHTSA ‘safest’ ranking within the five-star category,” the agency said

Sunday, Tesla (TSLA) said in a blog post, “NHTSA’s tests also show (the Model 3) has the lowest probability of injury of all cars the safety agency has ever tested.”

That claim prompted numerous blogs and commentators to call the M3 the “safest ever” vehicle.

Tesla said it had engineered the car to be “the safest car ever built.” And that stretched the NHTSA’s rating on the M3 way beyond its scope, more hype from Tesla and its CEO, Elon Musk.

Tuesday, Tesla its assessment was calculated using publicly available data, taking the weighted average of crash scores to calculate a vehicle safety score and then multiplying it by a baseline injury risk value.

Tesla’s analysis also said that its M-S and M-X, also had a lower probability of injury than all other vehicles tested by NHTSA.

In November 2013, NHTSA blocked automakers from promoting vehicle safety ratings of more than 5-Stars, 3 months after Tesla touted the score on its M-S.

Tesla said in August 2013 that the M-S had achieved a score of 5.4 Stars, a figure based on Tesla’s independent analysis of NHTSA data. Then 3 months later, NHTSA explicitly barred companies from promoting safety scores higher than 5-Stars.

NHTSA is considering changes to its 5-Star crash assessment program and said it needs “to be modernized to incentivize the voluntary adoption of safety features.” The agency is considering creating safety ratings for areas of vehicle performance not currently rated.

But, but as long a Tesla is in production, do not expect its PR department not the puff up the benefits of owning 1 of its EVs.

Analyst’s Note: On 7 August 2018 on the heals of Mr. Musk’s ‘420’ Tweet we targeted the stock at 250/share, on 8 October it hit 249, we hit our target, and now after assessing the future of this bleeding Unicorn, our new call is 100-75.

There is no market support for TSLA under 260.01 and what there is there is very soft.

The company is no longer an investment , it is s speculation by market professionals, be cautious.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 262.8 9 October 2018 12.24 255.25 266.77 253.3 12,060,500
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Bearish (-0.37) Neutral (-0.21) Bearish (-0.33) Very Bearish (-0.56)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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