Tesla is taking steps to launch a ride-sharing service that could compete directly with Uber, Lyft and Waymo. Why it matters: Tesla has long pledged to run an autonomous vehicle network, which could become a significant new source of revenue at a time when its sales have flattened.

The office overseeing regulations for autonomous vehicles lost nearly half its staff last month in NHTSA cuts, one terminated employee said.

Tesla shares rose 2% on Monday after Morgan Stanley reinstated the electric-vehicle maker as its top U.S. auto pick, saying the company's artificial intelligence and robotics efforts could power growth even as the mainstay car business stumbles.

Tesla ( TSLA) bull Cathie Wood is sticking with the electric vehicle maker after a rough February. The Ark Investment founder says there is a lot of "pent-up demand" for Tesla vehicles. The big valuation unlock, in her view, is Tesla releasing robotaxis across the country.

See why Tesla, Inc. stock is declining and the potential impact of its Robotaxi struggles on growth, valuation, and market relevance. Explore more details here.

SEE ALSO: Mercedes-Benz beats Tesla to selling Level 3 autonomous cars in the U.S. If I can't own an autonomous vehicle, when will I be able to ride in a robotaxi? Given the deployment of AVs in ...

Morgan Stanley analyst Adam Jonas has backed struggling electric vehicle maker Tesla (TSLA) and indicated the stock could have as much as 50%