Tesla Fights Back Against Rating That Knocks Model S Safety, Stock News – Stock Market Analysis
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Tesla Fights Back Against Rating That Knocks Model S Safety
- BRIAN DEAGON
- 7/06/2017
Tesla (TSLA) was fighting back Thursday against a report by an auto-insurance funded group telling its Model S sedan did not build up the top safety score after a series of crash tests.
X Autoplay: On | Off The Insurance Institute for Highway Safety, a nonprofit organization funded by auto insurers, late Wednesday issued a report on a series of crash tests that said the Model S is not the safest car on the road, as Tesla has claimed.
The declaration abandoned Tesla of IIHS’s top safety honor. Instead, Tesla received only an “acceptable” rating in a test that presents the type of crash that occurs when the front driver-side corner of a vehicle hits a tree or utility pole or collides with another vehicle, known as the puny overlap front test. It was one of five crash tests, with Tesla receiving a top rating in the other four.
Tesla refuted the IIHS assessment, telling the organization is not the most accurate or reliable provider of vehicle safety tests.
“While IIHS and dozens of other private industry groups around the world have methods and motivations that suit their own subjective purposes, the most objective and accurate independent testing of vehicle safety is presently done by the U.S. Government which found Model S and Model X to be the two cars with the lowest probability of injury of any cars that it has ever tested, making them the safest cars in history,” Tesla said in an email statement.
Tesla stock finished the regular trading session down Five.6% to 308.83 on the stock market today.
IIHS’s rating of acceptable is one notch below a rating of good, the best rating possible by the organization. Tesla received a good rating on the other four tests.
“The main problem with the spectacle of the Model S was that the safety belt let the dummy’s pecs stir too far forward, permitting the dummy’s head to strike the steering wheel hard through the air bag,” the IIHS report said.
Dave Zuby, IIHS executive vice president and chief research officer who oversaw the Model S crash tests, told CNBC, “If you’re looking for top-line safety, we believe there are other, better choices than the Model S.”
Tesla countered that the most accurate independent safety test is done by the National Highway Traffic Safety Administration, which previously found the Model S and Model X to have the lowest probability of injury of any cars that it has ever tested, earning them its highest safety rating.
The difference inbetween the two crash tests is the NHTSA does not include petite overlap front-end collisions in its tests, which the IIHS says accounts for about a quarter of the injuries and fatalities in front-end crashes.
IBD’S TAKE: Tesla stock is down hard for the third straight trading day in strong volume, falling below its 50-day moving average on Wednesday, and down 19% from a record high of 386.99 set on June 23. Check out the IBD fifty for a screen of leading growth stocks demonstrating strong relative price strength and top-notch fundamentals.
Tesla had previously received the acceptable rating on the overlap front test, which it had worked to improve. Tesla made switches to the safety belt in vehicles built after January with the intent of reducing the dummy’s forward movement. However, when IIHS tested the modified Model S, the same problem occurred, and the rating didn’t switch.
Of six large cars the IIHS tested, three received the top safety rating. They were the Lincoln Continental made by Ford Motor (F), the Mercedes-Benz E-Class from Daimler (DDAIF)and the Avalon built by Toyota Motor (TM).
Of the three other cars tested, the Model S, Chevrolet Impala by General Motors (GM) and Ford Taurus “fell brief of any award because they each earn only an acceptable rating in the petite overlap front test,” the IIHS said.
Tesla Fights Back Against Rating That Knocks Model S Safety, Stock News – Stock Market Analysis
Technology
Visit the IBD Store to get embarked.
Technology
Tesla Fights Back Against Rating That Knocks Model S Safety
- BRIAN DEAGON
- 7/06/2017
Tesla (TSLA) was fighting back Thursday against a report by an auto-insurance funded group telling its Model S sedan did not build up the top safety score after a series of crash tests.
X Autoplay: On | Off The Insurance Institute for Highway Safety, a nonprofit organization funded by auto insurers, late Wednesday issued a report on a series of crash tests that said the Model S is not the safest car on the road, as Tesla has claimed.
The declaration neglected Tesla of IIHS’s top safety honor. Instead, Tesla received only an “acceptable” rating in a test that presents the type of crash that occurs when the front driver-side corner of a vehicle hits a tree or utility pole or collides with another vehicle, known as the petite overlap front test. It was one of five crash tests, with Tesla receiving a top rating in the other four.
Tesla refuted the IIHS assessment, telling the organization is not the most accurate or reliable provider of vehicle safety tests.
“While IIHS and dozens of other private industry groups around the world have methods and motivations that suit their own subjective purposes, the most objective and accurate independent testing of vehicle safety is presently done by the U.S. Government which found Model S and Model X to be the two cars with the lowest probability of injury of any cars that it has ever tested, making them the safest cars in history,” Tesla said in an email statement.
Tesla stock finished the regular trading session down Five.6% to 308.83 on the stock market today.
IIHS’s rating of acceptable is one notch below a rating of good, the best rating possible by the organization. Tesla received a good rating on the other four tests.
“The main problem with the spectacle of the Model S was that the safety belt let the dummy’s chest budge too far forward, permitting the dummy’s head to strike the steering wheel hard through the air bag,” the IIHS report said.
Dave Zuby, IIHS executive vice president and chief research officer who oversaw the Model S crash tests, told CNBC, “If you’re looking for top-line safety, we believe there are other, better choices than the Model S.”
Tesla countered that the most accurate independent safety test is done by the National Highway Traffic Safety Administration, which previously found the Model S and Model X to have the lowest probability of injury of any cars that it has ever tested, earning them its highest safety rating.
The difference inbetween the two crash tests is the NHTSA does not include puny overlap front-end collisions in its tests, which the IIHS says accounts for about a quarter of the injuries and fatalities in front-end crashes.
IBD’S TAKE: Tesla stock is down hard for the third straight trading day in intense volume, falling below its 50-day moving average on Wednesday, and down 19% from a record high of 386.99 set on June 23. Check out the IBD fifty for a screen of leading growth stocks displaying strong relative price strength and top-notch fundamentals.
Tesla had previously received the acceptable rating on the overlap front test, which it had worked to improve. Tesla made switches to the safety belt in vehicles built after January with the intent of reducing the dummy’s forward movement. However, when IIHS tested the modified Model S, the same problem occurred, and the rating didn’t switch.
Of six large cars the IIHS tested, three received the top safety rating. They were the Lincoln Continental made by Ford Motor (F), the Mercedes-Benz E-Class from Daimler (DDAIF)and the Avalon built by Toyota Motor (TM).
Of the three other cars tested, the Model S, Chevrolet Impala by General Motors (GM) and Ford Taurus “fell brief of any award because they each earn only an acceptable rating in the petite overlap front test,” the IIHS said.
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