Bank of America sets $460 Tesla price target as stablecoin yield dispute escalates
Bank of America reinstated Tesla coverage with a Buy rating and $460 target, citing robotaxis in San Francisco and 1.1 million self-driving subscriptions as growth drivers. President Trump backed crypto firms in a stablecoin yield dispute, threatening banks’ ability to offer interest-like returns and limiting Bank of America’s crypto services.
1. Tesla Coverage Reinstated with $460 Price Target
Bank of America analysts have resumed coverage of Tesla, assigning a Buy rating and $460 price objective. The firm highlights Tesla’s camera-only autonomous driving approach, existing robotaxi operations in San Francisco and Austin, seven new markets by mid-2026 and 1.1 million full self-driving subscriptions as key growth catalysts. Additional upside is seen from the Optimus humanoid robot, valued at over $30 billion, and a $90 billion energy segment expected to lead residential and utility-scale storage.
2. President Backs Crypto Firms in Stablecoin Yield Dispute
President Trump publicly sided with crypto firms challenging banks’ ability to offer interest-like returns on stablecoin holdings, pressing financial institutions to relent. This dispute could restrict Bank of America’s plans to expand digital-asset services and capture yield-driven revenue, as banks navigate regulatory and political pressures over crypto product offerings.