Tesla CEO Elon Musk announced that the company is testing its ride-hailing robotaxis in Austin, Texas without safety monitors. This news caused Tesla’s stock to rise by 4% on Dec. 15. The progress aligns with Tesla’s plan to remove safety monitors in the next few months for a full robotaxi launch in the US by 2028.

Morningstar maintains a fair value estimate of $300 for Tesla, considering a full robotaxi launch in 2028 without safety monitors. However, current prices indicate Tesla shares are overvalued by 60% and in 2-star territory. The market may be valuing Tesla’s robotaxi business too high, leading to smaller profits and cash flows in the future.

Read more at Morningstar: Tesla: Shares Rally on Robotaxi Testing Without Safety Monitor