Tesla CEO Elon Musk purchased $1 billion worth of Tesla stock on Sept. 12, causing shares to rise 6%. Musk’s purchase may indicate he believes the stock is undervalued, potentially increasing in value. Morningstar maintains a $250 fair value estimate for Tesla, with the majority coming from AI software and robotics. However, current stock prices are considered significantly overvalued, trading around 70% above fair value. Tesla’s autonomous driving software, including the robotaxi, is progressing with expanded testing in new cities, but full service may not be ready until 2028, two years later than management’s guidance.

Read more at Morningstar: Shares Soar on CEO Elon Musk’s Share Purchase