NHTSA Investigates Fatal Tesla Model 3 Crash
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 50 minutes ago
0mins
Source: Newsfilter
- Investigation Launched: The NHTSA has initiated a special investigation into a fatal crash involving a Tesla Model 3 that struck a Texas home, resulting in the death of a 76-year-old woman, highlighting potential safety concerns surrounding Tesla's automated driving systems.
- Driver's Use of Automation: At the time of the incident, driver Michael Butler reported using Tesla's partially automated driving systems, raising further scrutiny over the safety of such technology and potentially impacting consumer confidence in Tesla's offerings.
- Historical Investigation Count: Since 2016, the NHTSA has opened over three dozen special crash investigations related to Tesla's partially automated driving systems, indicating ongoing regulatory scrutiny and public concern regarding the company's autonomous driving capabilities.
- Market Reaction: Despite the federal probe, Tesla's stock rose to $405.05 on Monday, suggesting that investors remain optimistic about the company's future in autonomous vehicles, although safety issues could affect its market reputation.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 400.490
Low
25.28
Averages
401.93
High
600.00
Current: 400.490
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Continued Massive Losses: SpaceX reported losses of $4.9 billion in 2025 and $4.3 billion in Q1 2026, with management anticipating increased capital expenditures and operating expenses, suggesting that the company may remain unprofitable for an extended period unless revenue growth improves significantly.
- Intensifying Market Competition: While SpaceX leads in the aerospace sector, increasing competition and the majority of its market opportunities being in the AI sector may weaken its economic moat in space, raising investment risks.
See More
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- Investigation Launched: The National Highway Traffic Safety Administration (NHTSA) confirmed it is launching a special investigation into a fatal crash involving a Tesla Model 3 in Texas, where a woman died, highlighting potential risks associated with automated driving assistance systems.
- Crash Details Revealed: The incident occurred on June 19 when the Tesla Model 3 veered off the road and crashed into a residential home at high speed, resulting in minor injuries to the 44-year-old driver while the woman inside was later pronounced dead, underscoring safety concerns surrounding autonomous driving technology.
- Increased Regulatory Scrutiny: NHTSA is conducting multiple ongoing probes into Tesla's Autopilot and Full Self-Driving systems, including a broader investigation covering approximately 3.2 million vehicles, focusing on the systems' performance under adverse weather conditions.
- Negative Market Reaction: Although Tesla shares rose 1% during regular trading hours, they fell 0.2% in after-hours trading, indicating a lack of investor confidence in the company's autonomous driving technology, with retail sentiment remaining extremely bearish.
See More
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- Staggering IPO Valuation: SpaceX went public with a valuation of approximately $2 trillion, surpassing Tesla and briefly becoming the fourth most valuable company globally, highlighting market optimism despite its lack of profitability.
- Market Performance Fluctuations: Shortly after its IPO, SpaceX's market cap exceeded that of Amazon and Microsoft, but its stock price has since fallen to $155, marking the lowest close since going public, indicating investor concerns over its inflated valuation.
- Investment Risk Warning: While SpaceX has significant growth prospects in space and AI, it remains a cash-burning business, and investors should be cautious of the downside risks associated with such high valuations, which could lead to substantial declines in stock value.
- Comparison with Tesla: Unlike Tesla's IPO in 2010, which had a more modest valuation, SpaceX's high valuation poses greater risks for investors, as Tesla's success was partly due to its profitability, which SpaceX has yet to demonstrate.
See More
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- Investigation Launched: The NHTSA has initiated a special investigation following a tragic accident involving a Tesla Model 3 in Katy, Texas, which resulted in the death of 76-year-old Martha Avila, highlighting potential safety concerns with automated driving systems.
- Driver's Statement: The driver, Michael Butler, reported using Tesla's partially automated driving system at the time of the crash, where the vehicle veered out of its lane and collided with a house, indicating risks associated with the practical application of autonomous driving technology.
- Historical Investigation Context: This investigation adds to over thirty similar probes initiated by the NHTSA since 2016 regarding Tesla incidents, reflecting ongoing regulatory scrutiny and public concern surrounding the company's autonomous driving capabilities.
- Fatality Statistics: According to TeslaDeaths.com, at least 65 fatalities have been reported from crashes involving Tesla's Autopilot or Full Self-Driving systems from 2013 to 2025, underscoring significant safety challenges associated with this technology.
See More
SpaceX Achieves $2 Trillion Valuation Post-IPO
- Staggering Valuation: SpaceX's IPO this month valued the company at approximately $2 trillion, instantly making it one of the most valuable companies globally, surpassing Tesla and reflecting strong market expectations for its future growth.
- Market Performance Volatility: Although SpaceX briefly eclipsed Amazon and Microsoft in market capitalization, becoming the fourth-largest company in the U.S. market, its stock price fell to around $155 shortly after, highlighting the risks associated with such high valuations.
- Investment Risk Warning: As a cash-burning business, SpaceX's high valuation may expose investors to significant downside risks, especially given its shaky fundamentals, despite the market's confidence in its future potential.
- Comparison with Tesla: Unlike Tesla, which went public in 2010 at a much lower valuation and achieved profitability, SpaceX's high valuation could impact investor returns, emphasizing the importance of considering valuations when investing.
See More
