Bank of America Raises Tesla (TSLA) PT to $471, Maintains Neutral Rating

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks in the Spotlight This Week. On October 29, Bank of America raised its price objective on the stock to $471 from $341 but maintained a Neutral rating.

The firm believes that Tesla remains a clear leader in “physical AI” but warned that its valuation remains stretched.

According to firm analysts, the new price target is based a sum-of-the-parts (SOTP) valuation, assigning an estimated 45% of Tesla’s total value to its robotaxi business, 17% to Full Self Driving, 12% to core automotive, and 6% to energy generation and storage, and 19% to Optimus.

“We raise our PO to $471 from $341, still based on our sum-of-the-parts (SOTP) analysis. Recall that our valuation approach is based on a discounted cash flow (DCF) analysis built out until 2040. 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%. 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.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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