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

See Full Page