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

Core Insights - Bank of America raised Tesla's price objective to $471 from $341 while maintaining a Neutral rating, indicating a belief in Tesla's leadership in "physical AI" but cautioning about its stretched valuation [1][3] Valuation Breakdown - The new price target is based on a sum-of-the-parts (SOTP) valuation, with 45% of Tesla's total value attributed to its robotaxi business, 17% to Full Self Driving (FSD), 12% to core automotive, 6% to energy generation and storage, and 19% to Optimus [2][3] Valuation Methodology - The price objective revision is driven by a lower cost of equity capital, improved progress in the robotaxi sector, and a higher valuation for Optimus, reflecting potential international market entry [3]