Bank of America Sets $460 Tesla Target, Forecasts Robotaxis in Seven Cities
BofA reinstated Tesla with a Buy rating and $460 price target based on a sum-of-parts valuation of its EV division, Full Self-Driving software, robotaxis, Optimus humanoids and energy storage. The bank expects robotaxi operations in seven more U.S. cities in H1 and allocates over $30 billion to Tesla’s humanoid robot business.
1. Buy Rating Reinstated and $460 Target
Bank of America reinstated coverage of Tesla with a Buy rating and assigned a $460 price target based on expectations for its diversified mobility and energy businesses. The upgrade reflects confidence in Tesla’s ability to sustain margins through both its automotive operations and emerging technology segments.
2. Sum-of-Parts Valuation Breakdown
The bank’s sum-of-parts valuation allocates value to Tesla’s core electric vehicle division, Full Self-Driving software, robotaxi platform, Optimus humanoid robots and energy generation and storage units. Analysts highlight Tesla’s camera-only approach and extensive driving data as key competitive advantages for scaling autonomy profitably.
3. Robotaxi Expansion and Optimus Valuation
Analysts forecast Tesla will launch robotaxi services in seven additional U.S. markets during the first half of the year. The Optimus humanoid robot business is valued at over $30 billion, underscoring its potential as a meaningful growth driver beyond vehicle sales.