Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
Bank of America has raised its price target for Tesla (TSLA) by 38% to $471, maintaining a Neutral rating. The increase reflects strong potential in Tesla's Robotaxi and Optimus programs, which are expected to drive future value. The Robotaxi platform accounts for 45% of the total value, while Optimus contributes 19%. Despite the optimistic long-term outlook, the firm suggests that much of this potential is already reflected in Tesla's current valuation.
Bank of America has raised its Tesla (NASDAQ:TSLA) price target by 38% to $471, up from $341 per share.
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Robotaxi and Optimus lead Tesla’s next phase of value creation
Bank of America analyst Federico Merendi noted that the firm’s price target increase reflects Tesla’s growing potential in its Robotaxi and Optimus programs, among other factors. BofA’s updated valuation is based on BofA’s sum-of-the-parts (SOTP) model extending through 2040, with the Robotaxi platform accounting for 45% of total value. Tesla’s humanoid robot Optimus contributes 19%, while Full Self-Driving (FSD) software and the Energy segment add 17% and 6% respectively.
“Overall, we find that TSLA’s core automotive business represents around 12% of the total value while robotaxi is 45%, FSD is 17%, Energy Generation & Storage is around 6% and Optimus is 19%,” the Bank of America analyst noted.
— Hardik Shah (@AIStockSavvy) October 29, 2025$TSLA | 𝐓𝐞𝐬𝐥𝐚 (TSLA): BofA Securities raises 𝐏𝐓 𝐭𝐨 $𝟒𝟕𝟏 (from $341), keeps 𝐍𝐞𝐮𝐭𝐫𝐚𝐥 — cites 𝐑𝐨𝐛𝐨𝐭𝐚𝐱𝐢 𝐚𝐧𝐝 𝐎𝐩𝐭𝐢𝐦𝐮𝐬 𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐮𝐩𝐥𝐢𝐟𝐭
Analyst lifts PT on lower cost of equity and higher Robotaxi & Optimus value, while maintaining… pic.twitter.com/apJBKZTAry
Valuation optimism tempered by near-term constraints
Despite recognizing long-term potential in AI-driven verticals, Merendi’s team maintained a Neutral rating, suggesting that much of the optimism is already priced into Tesla’s valuation.
“Our PO revision is driven by a lower cost of equity capital, better Robotaxi progress, and a higher valuation for Optimus to account for the potential entrance into international markets,” the analyst stated.
Interestingly enough, Tesla’s core automotive business, which contributes the lion’s share of the company’s operations today, represents just 12% of total value in BofA’s model.
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