Tesla Stock (TSLA) Jumps after BofA’s Buy Upgrade, Crowns it ‘Consumer Autonomy Leader’

2026-03-04 16:25:28

Tesla TSLA -2.70% ▼ stock is up 2% in pre-market trading at the time of writing, after Bank of America Securities analyst Alexander Perry upgraded the stock to “Buy” from its long-standing “Hold” rating. He assigned a $460 price target, which implies 17.2% upside potential from current levels. This move reflects growing optimism around Tesla’s dominance in autonomous driving technology amid the accelerating shift toward self-driving vehicles.

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Tesla shares have been under pressure over the past three months, down 13.7%, amid company-specific and macro issues. Investors have awaited a true catalyst like an affordable Cybertruck or aggressive robotaxi expansion.

BofA Reinstates Tesla with a Buy

Perry positions Tesla as “the current leader in consumer autonomy” and anticipates it will swiftly emerge as a frontrunner in robotaxi services. He highlighted Tesla’s edge in scaling operations more profitably than rivals, thanks to its vast data from millions of miles driven, advanced Full Self-Driving (FSD) software, and manufacturing prowess.

He projects that autonomous vehicles will ignite the next mobility revolution, delivering time savings for riders, enhanced road safety through reduced human error, and broader access to transportation, especially in underserved areas. This revolution will ultimately reshape urban mobility and unlock massive revenue streams for leaders like Tesla.

Perry noted that Tesla’s robotaxi services are already operational in San Francisco and Austin, with plans to expand into seven additional markets during the first half of 2026. He attributed approximately 52% of Tesla’s overall valuation to the potential of its robotaxi business.

He also sees big growth potential beyond autos, including the Optimus humanoid robot, which is valued at over $30 billion. Moreover, Tesla’s energy business is valued at $90 billion. Perry expects Tesla to lead in home batteries and large-scale storage.

Is Tesla a Buy, Hold, or Sell?

On TipRanks, Tesla stock has a Hold consensus rating based on 13 Buys, 11 Holds, and seven Sell ratings. The average Tesla price target of $399.25 implies 1.7% upside potential from current levels.

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