Bank of America Raises Tesla Stock Target After Giga Texas Visit

Bank of America has increased its price target for Tesla (NASDAQ: TSLA) shares from $350 to $400, citing greater confidence in the company’s growth prospects following a recent visit to Tesla’s Giga Texas factory in Austin.
During the visit, which included meetings with Tesla’s investor relations team, factory tours, and test drives, analysts observed key developments that support Tesla’s long-term growth strategy.
“The visit strengthened our confidence in Tesla’s ability to expand its core electric vehicle (EV) business, roll out new vehicles to broaden its market reach, and launch its robotaxi program by 2025. Additionally, its Optimus robotics initiative appears to be making significant progress,” Bank of America analysts stated while reaffirming their Buy rating for Tesla stock.
Tesla’s Full Self-Driving (FSD) technology also impressed analysts. Vehicles running on FSD versions 12.5 and 13.2 successfully navigated complex roads autonomously, with Tesla predicting a milestone of just one human intervention every 10,000 miles in the near future. This achievement aligns with its plans for a commercial robotaxi rollout in 2025.
Tesla’s advancements in artificial intelligence and computing power were also highlighted. With 50,000 H100 chips driving its AI expansion, Tesla is rapidly scaling its capabilities, putting it in a strong position relative to competitors like Waymo.
The Optimus robot program is another area of progress. Currently used for internal tasks such as sorting 4680 battery cells, Tesla plans to scale production to 1,000 units by 2025. Enhanced training and expanded compute resources are expected to accelerate development while potentially cutting production costs significantly by 2026.
Bank of America also anticipates a shift in Tesla’s margins from being hardware-dominated to software-driven, with premium services like FSD and connectivity playing a central role. The bank suggested that Tesla could raise additional equity to further expand its computing capacity, a move it believes investors would support.
With its strong focus on AI, robotics, and software innovation, Bank of America views Tesla as well-positioned for sustained long-term growth, underpinned by robust EV/EBITDA metrics that justify the raised valuation.