Bank of America analysts have reopened coverage of Tesla with a Buy rating, citing the company’s progress in developing autonomous robotaxi services as a key growth driver. This marks a renewed bullish stance after previous caution on valuation and execution timelines.

Tesla has accelerated testing and deployment of its robotaxi fleet, targeting a commercial launch within the next few quarters. The company projects significant new revenue streams from ride-hailing services, potentially transforming profit margins over the medium term.

Tesla shares have declined 9.7% year-to-date, contributing to investor concerns over near-term growth challenges. This drop has also played a role in reducing Larry Ellison’s net worth by $46.7 billion, given his stake in the company.