Bank of America upgrades Tesla, expecting it to “quickly become a leader in robotaxi services”
Tesla jumped in premarket trading after Bank of America reinstated coverage of the EV maker and upgraded it to “buy” from “hold,” with a price target of $460.
“We expect TSLA to quickly become a leader in robotaxi services, given its ability to scale more profitably than competitors,” analyst Alexander Perry wrote, noting that Tesla’s approach eschews more expensive (but more robust) technology like lidar.
BofA says Tesla’s Robotaxi service could amount to $844 billion in equity value and more than half Tesla’s valuation.
Currently, Robotaxi operates in two markets with heavy human oversight. In Austin, most of the rides involve a safety monitor sitting in the front seat, and in the Bay Area, all rides are driven by a human using supervised Full Self-Driving tech.
Alphabet subsidiary Waymo, meanwhile, is currently operating its driverless ride-hailing service in 10 US markets.
Currently, Robotaxi operates in two markets with heavy human oversight. In Austin, most of the rides involve a safety monitor sitting in the front seat, and in the Bay Area, all rides are driven by a human using supervised Full Self-Driving tech.
Alphabet subsidiary Waymo, meanwhile, is currently operating its driverless ride-hailing service in 10 US markets.
