Tesla price target raised to $400 from $350 at BofA

BofA analyst John Murphy raised the firm’s price target on Tesla (TSLA) to $400 from $350 and keeps a Buy rating on the shares. After having visited Tesla’s Texas gigafactory for a meeting with IR, a factory tour and a ride and drive session, the firm tells investors that the trip gave it increased confidence that Tesla is well-positioned to grow in 2025 and beyond with its core EV business and launch of its robotaxi offering, as well as longer-term from its investments in Optimus. The firm also sees opportunities for Tesla to improve margins, which today are mainly driven by hardware, but will shift more to margin-accretive software with growth in Full Self Driving, the analyst added.