Tesla stock is showing renewed investor optimism following Bank of America’s (BofA) bullish price target update, despite looming challenges in the EV sector. BofA analysts this week raised their price target for Tesla stock from $305 to $341—a projected 11% upside—as confidence grows in Tesla’s Full Self-Driving (FSD) roadmap and Robotaxi initiatives.
Why Tesla Stock Remains Attractive Amid Headwinds
Despite facing significant hurdles, including the phase-out of the Inflation Reduction Act (IRA) $7,500 EV credit and rising U.S. tariffs on China-sourced components, Tesla stock is still viewed favorably by BofA. In their latest investor note, BofA analysts cited that Tesla is “the most challenged among the three OEMs” (original equipment manufacturers), comparing it with General Motors and Ford. Nonetheless, the investment bank sees longer-term potential thanks to Tesla’s innovation pipeline.
A key driver of this optimistic outlook is Tesla’s promise to deliver unsupervised Full Self-Driving (FSD) by the end of 2025. The initiative, which has been quietly progressing in Austin, Texas, could disrupt the ride-sharing and autonomous vehicle markets if successful. Notably, Tesla’s Robotaxi concept is expected to expand to other key regions including Phoenix and the San Francisco Bay Area.
Growth Potential Outweighs Value Concerns
Tesla recently celebrated a major milestone with its Model 3 sedan surpassing 3 million units in global sales. However, its U.S. sales dropped 12.6% year-over-year in Q2 2025. Despite this dip, Tesla continues to score high on metrics like growth and quality. BofA’s revised target reflects a belief that Tesla stock has the resilience and innovation to overcome temporary market pressures.
Piper Sandler’s Alex Potter echoed this sentiment, noting that Tesla’s ability to scale its FSD and Robotaxi services could be a game-changer, especially as demand for autonomous and electric mobility rises globally. However, regulatory hurdles remain. With President Trump’s new NHTSA nominee, Jonathan Morrison, calling for tighter regulations on self-driving technologies, Tesla stock could face policy-driven volatility in the short term.
Long-Term Vision Anchors Investor Confidence
While the short-term view may include potential disruptions due to tariff increases and credit rollbacks, Tesla’s long-term technological roadmap continues to attract investor attention. Analysts are betting that Tesla’s software-driven approach and AI integration in mobility will give it an edge over traditional automakers. If unsupervised FSD meets its targets, Tesla stock could become even more attractive by late 2025.
Is Now the Time to Watch Tesla Stock?
With analysts forecasting an 11% upside and key developments in FSD and Robotaxi operations underway, Tesla stock remains a hot topic on Wall Street. As investors weigh the risks of policy changes and market dynamics, many are looking toward Elon Musk’s ambitious vision for autonomous vehicles as a key differentiator in the crowded EV space.
For those keeping an eye on technology, innovation, and startup investments, Tesla stock is a bellwether to watch closely in 2025.
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