Core Insights - Tesla has launched a small self-driving taxi service in Austin, TX, marking the first instance of its autonomous vehicles transporting paying passengers without a human driver present [1][9] - The pilot program involves around 10 Tesla vehicles operating in a limited area, with a passenger in the front seat acting as a safety monitor [2][9] - Texas has enacted new legislation requiring permits for driverless cars, effective September 1, 2025, indicating a cautious approach from state leaders towards the autonomous vehicle industry [3][9] Industry Context - Other companies, such as Amazon's Zoox and Alphabet's Waymo, are also advancing their robotaxi services, with Zoox opening a dedicated manufacturing facility and Waymo planning to restart testing in New York City [5][6] - Waymo currently operates the only commercial robotaxi service in the U.S., with a fleet of over 1,500 vehicles providing more than 250,000 rides weekly in major cities [6] Financial Performance - Tesla's stock has underperformed compared to the Zacks Automotive – Domestic industry, with shares down 20.2% year-to-date, while the industry has declined by 19.6% [7] - The Zacks Consensus Estimate for Tesla's 2025 EPS has decreased by a penny in the past 30 days, while the estimate for 2026 EPS has increased by a penny in the past week [10] Valuation Metrics - Tesla appears overvalued based on its price/sales ratio, trading at a forward sales multiple of 9.88, significantly higher than the industry's 2.60 [12]