Tesla, Inc.'s robotaxi hype falters as tech lags behind rivals. Explore why declining fundamentals and high valuation make TSLA a Strong Sell in today's market.

Elon Musk, CEO of Tesla, recently announced plans to expand the company's robotaxi service to the San Francisco Bay Area and other U.S. markets during an earnings call. However, California regulators have made it clear that Tesla is not permitted to operate autonomous vehicles (AVs) with passengers and must have a human driver behind the wheel.

The CPUC confirmed Friday that Tesla has not applied for the necessary authorization to operate autonomous vehicles for public passenger service-paid or unpaid-in the state. The clarification comes in direct response to reports that Tesla planned to launch its robotaxi service in the Bay Area as early as this weekend.