In a new research report today, BofA analyst Federico Merendi raised his price target on Tesla (TSLA) stock to $471 from $341, while keeping a Neutral rating. Merendi said the higher target reflects stronger progress in Tesla’s newer areas, such as self-driving and robotics, which he sees as key drivers of future growth.
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Analyst Sees More Upside in Tesla’s Future Projects
Merendi said his updated outlook is based on a detailed breakdown of Tesla’s main businesses. He estimates that the core automotive unit now represents only 12% of the company’s total value. The Robotaxi business makes up about 45%, followed by Full Self-Driving (FSD) at 17%, Energy Generation and Storage at 6%, and the Optimus robot at 19%.
The analyst pointed out that the biggest boost comes from Robotaxi and Optimus. He said Tesla’s progress in self-driving technology has moved faster than earlier expected. He also views the Optimus robot as a strong long-term growth opportunity, especially as Tesla looks to expand this product into international markets.
However, he maintained a Neutral rating on the stock, noting that much of this growth potential is already priced into the stock.
Is Tesla Stock a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on Tesla stock based on 14 Buys, 11 Holds, and nine Sell recommendations. The average TSLA stock price target of $383.66 indicates a possible downside of 16.70% from current levels.
