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Wolfe Research managing director and senior research analyst Emmanuel Rosner joins Market Domination hosts Julie Hyman and Josh Lipton to outline why he’s sitting on the sidelines for Tesla stock ahead of electric vehicle pioneer’s robotaxi day or any artificial intelligence (AI) advancements.

The analyst initiated coverage at Wolfe with a Peer Perform rating, the equivalent of a Neutral rating, with “a positive long trading call into the ramp up into their robotaxi day, which is coming up on October 10th.”

“The real thing that keeps us more Peer Perform rating now is the current valuation,” Rosner said, explaining that he feels "at current levels, the stock is essentially already embedding good value for a lot of the existing businesses continuing to grow.”

“The autos business fundamentals are plateauing here,” and while giving the company “credit for all their other businesses, including energy storage,” Rosner says “absent adding any new things to it like robotaxi as a business or AI, we feel like the stock is generally fairly valued.”

The analyst adds that if Tesla were to provide updates on a cheaper consumer model, it could also add value to the company’s stock.

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This post was written by Naomi Buchanan.