GLJ Research has reiterated its sell rating on Tesla, citing safety and operational concerns surrounding the company’s autonomous robotaxi program. Tesla currently trades at a price-to-earnings ratio of 367, reflecting the market’s high expectations despite ongoing operational challenges.

The research firm referenced collision rate analysis from the U.S. National Highway Traffic Safety Administration, indicating that Tesla’s supervised robotaxi fleet has a collision frequency four times higher than that of human drivers. These conclusions were derived from Tesla’s own benchmark data. According to GLJ Research, these findings suggest that Tesla’s Full Self-Driving (FSD) unsupervised program does not meet the standards required for safe and scalable commercial deployment. The firm argues that the entire Cybercab launch thesis depends on technology that has not yet proven reliable in real-world use.

Third-party fleet tracking data further shows that since its launch in Austin, the number of active unsupervised Tesla vehicles has declined sharply—from eight vehicles initially to effectively just one operational vehicle. GLJ Research describes this as concrete evidence of the current limitations of Tesla’s fully autonomous driving program.

Tesla has also experienced a wave of executive departures over the past six weeks. The company has reportedly lost its vice president of finance, Cybercab project manager, director of OTA and robotaxi infrastructure, vice president of North American sales, and senior technical program manager for FSD. GLJ Research highlighted that these resignations occurred within a short six-week period.

Meanwhile, Tesla has received government approval to convert its investment in Elon Musk’s artificial intelligence company xAI into shares of SpaceX. Documents filed with the U.S. Federal Trade Commission show that Tesla plans to acquire SpaceX shares from Musk as part of the transaction.

In addition, Tesla Energy Ventures Limited has obtained a license to supply electricity in the United Kingdom after receiving approval from the UK’s Office of Gas and Electricity Markets. This development represents an important step in Tesla’s international expansion of its energy business.

Tesla also reported strong growth in China. Sales of Model 3 and Model Y vehicles produced at its Shanghai factory rose 91% year-over-year in February, including exports to Europe and other markets. However, Tesla’s sales in the United Kingdom fell by 45.2% during the same period, while Chinese competitor BYD recorded a 40.9% increase in sales.

Market Interpretation:

Elon Musk recently announced a joint initiative between Tesla and xAI called “Macrohard,” aimed at simulating the functions of a software company. The project integrates xAI’s Grok large language model with AI agents developed by Tesla.