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Tesla Keeps High Safety Rating Despite NHTSA Investigation Of Battery Fires

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2014 Tesla Model S

2014 Tesla Model S

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Back in August, Tesla [NASDAQ: TSLA] boasted that the Model S was so safe, it broke the National Highway Traffic Safety Administration's testing equipment. In fact, Tesla was so exuberant about the Model S' performance in those tests, it used some very creative math to generate a fictitious safety score -- which resulted in a smackdown from NHTSA and caused the agency to upgrade its advertising rules for automakers

But it hasn't all been wine and roses for Tesla. As you might recall, the Model S is the subject of a safety investigation, which began in the wake of three fires caused by breaches of the all-electric car's lithium-ion battery pack. Naturally, some industry-watchers began to wonder if the investigation would diminish the Model S' safety rating. 

Though NHTSA hasn't addressed that issue directly, Tesla has. In a blog post, the automaker states that NHTSA confirmed the Model S' high safety score, adding that a German agency says that the Model S is perfectly fine:

The National Highway Traffic Safety Administration (NHTSA) has reaffirmed the 5-star safety rating of the Tesla Model S overall and in all subcategories for Model Year 2014, confirming the highest safety rating in America. While Tesla is awaiting feedback from NHTSA regarding their investigation of recent fire incidents, the German Federal Motor Transport Authority, Kraftfahrt-Bundesamt (KBA), recently concluded its review of the incidents, finding no manufacturer-related defects or need for further action.

And that's been good enough for investors: since the posting went up, Tesla stock has surged more than $10 per share, jumping from $144 to $155 this week. Considering the beating that Tesla shares have taken in recent weeks, that's the best holiday gift CEO Elon Musk could've hoped for.


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