Bank of America (BofA) has reinstated coverage of Tesla (NASDAQ: TSLA) with a ‘Buy’ rating, raising its price target to $460.
The banking giant cited the company’s dominant position in autonomous driving and its expected leadership in the next phase of mobility innovation.
Analyst Alexander Perry also emphasized the automaker’s potential to capture a leading share of the robotaxi and autonomous transportation market, praising its ability to scale more profitably compared to its peers.
“We expect TSLA to quickly become a leader in robotaxi services, given its ability to scale more profitably than competitors,” Perry wrote.
The note pointed specifically to Tesla’s camera-based autonomous driving architecture as technically more challenging but also more cost-efficient than the multi-sensor approaches used by many competitors.
It is this strategy, BofA argued, that should enable Elon Musk’s company to scale its services more profitably as it continues to expand.
Revised Tesla price targets
As mentioned, Bank of America also highlighted the early deployment of Tesla robotaxis, which are expected to launch in seven new markets in the first half of 2026. Accordingly, the bank estimates the service could represent about 52% of Tesla’s overall valuation.
Beyond the automotive business, the note pointed to upside potential from the Optimus humanoid robot initiative, valued at more than $30 billion.
Likewise, the company’s energy division is estimated at $90 billion, with leadership across residential and utility-scale battery storage markets, which could prove an additional catalyst for a bullish long-term outlook.
Overall, BofA’s new projected TSLA share forecast has pushed the average price target for the next twelve months to $399, judging by the analyst data available on TipRanks at press time.
The average projection implies a modest 1.74% upside, compared to BofA’s, which sees the stock rallying more than 17%. The most optimistic predictions, however, see Tesla rallying to $600 per share.
Featured image via Shutterstock
