Tesla has received approval to test its robotaxi in Arizona, with shares up 4%. This marks the fourth state for testing, indicating successful progress. Morningstar predicts Tesla could capture 30% of the US and Canada ride-hailing market by 2035. However, the stock is deemed overvalued, trading 75% above fair value estimate.

Although a full robotaxi launch is forecasted for 2028, two years later than management’s guidance, Tesla’s autonomous driving system shows promise. The camera-only approach allows for scalability and entry into new markets. This innovation could give Tesla a competitive edge and faster growth compared to its peers.

Read more at Morningstar: Shares Rally as Robotaxi Testing Expands to Arizona