NHTSA’s rating system includes information regarding the soundness of a vehicle’s rollover safety features as well as crash protection mechanism built into the vehicle.
In a significant development, U.S. auto safety agency NHTSA has awarded Tesla Inc’s Model 3 a five-star rating in tests that are standard for all cars in the United States.
With the news reaching the market, Tesla’s shares were up by 1.7% to $304.27 in early trading on Thursday.
NHTSA, which started its rating program in 1993, had awarded Tesla’s Model X and Model S five-star rating as well in the past.
NHTSA’s ratings program provide information about crash protection and rollover safety of new vehicles.
With the Model 3 Sedan receiving the five-star rating from NHTSA, investors can collectively heave a sigh in relief; Tesla’s ability to stick to production targets for the Model 3 is weighing on the stock. With Tesla moving from ‘production hell’ to ‘delivery and logistics hell’, the luxury carmaker appears to be making much needed progress in its efforts to deliver sustainable-energy powered affordable mass market electric vehicles.