Tesla: Why Morningstar analyst Seth Goldstein has a sell rating on the stock

Core Viewpoint - The market has become overly optimistic about Tesla's robo taxi initiative, with skepticism regarding its imminent launch without safety drivers and operational parameters [2][4]. Group 1: Robo Taxi Development - The company is currently in early testing phases for the robo taxi, and a full launch is expected to be several years away [2][4]. - Key metrics to watch include the management's timeline for progressing from early-stage testing with safety drivers to advanced testing without them [3][4]. - Any delays or incidents during testing could significantly impact the stock's optimistic outlook [6][8]. Group 2: Stock Performance and Market Sentiment - Tesla's stock is hovering around the $500 per share mark, similar to levels seen at the beginning of the year, despite historical issues with Elon Musk's delivery timelines [5]. - There is a belief that even if the robo taxi initiative fails, other projects like humanoid robots and energy solutions could shift investor focus [7]. - However, the current stock price in the mid-$400 range may not be justified without strong free cash flow and growth, particularly if there are delays in product launches or a slowdown in the battery business [8].