Tesla: B of A Securities Raises PT to $341 from $305, Maintains Neutral

Tesla: B of A Securities Raises PT to $341 from $305, Maintains Neutral

Bank of America (BofA) has raised its price target for Tesla (NASDAQ:TSLA) to $341 from $305, according to a recent report. The investment bank maintains a Neutral rating on the electric vehicle (EV) manufacturer despite acknowledging near-term challenges. The updated target reflects a stronger cash position and revised valuation assumptions [3].

Tesla is preparing for its second-quarter earnings report, which is expected to be challenging due to tariffs and disappointing deliveries. The company's exposure to international trade risks, particularly its reliance on Chinese-made batteries for its energy division, is a concern [3]. Despite these headwinds, BofA expects mixed results in the latter half of the year, with potential benefits from demand pull-forward in the U.S. in the third quarter and challenges due to the phase-out of IRA incentives in the fourth quarter [3].

The recent launch of Tesla's Robotaxi service in Austin, Texas, is seen as a positive step toward achieving unsupervised full self-driving (FSD) by the end of 2025. However, BofA cautions that the launch has "immaterial financial ramifications in the immediate term" [3].

In other news, Tesla recently announced that it has sold over 3 million units of the Model 3 sedan worldwide, ranking first in global pure electric car sales for seven consecutive years [5]. The company has also experienced sluggish sales in the U.S., with new units sold dropping 6% year-over-year (YoY) in the country. Despite this, Tesla remains the segment leader with a 44% market share in America [5].

References:

[1] https://www.cnn.com/markets/stocks/TSLA
[2] https://www.investing.com/news/analyst-ratings/tesla-stock-price-target-maintained-at-355-by-cantor-fitzgerald-93CH-4143936
[3] https://uk.finance.yahoo.com/news/tesla-stock-why-bofa-says-120607448.html
[4] https://ih.advfn.com/market-news/article/13087/tesla-stock-bank-of-america-highlights-challenges-ahead-for-q2-earnings
[5] https://www.benzinga.com/markets/tech/25/07/46512836/elon-musks-tesla-announces-3-million-model-3-units-sold-worldwide