Bank of America has revised Tesla’s valuation upward, factoring in projected profits from its future robotaxi network, bolstered by confirmed sightings of autonomous cybercabs at the company’s Gigafactory. The move reflects growing confidence in Tesla’s autonomous driving commercialization timeline.
- BofA revised Tesla’s valuation based on projected robotaxi profits
- Cybercabs spotted at Gigafactory signal progress in autonomous testing
- Robotaxi revenue potential estimated at $150 billion over ten years
- Fleet of 10 million vehicles by 2030 assumed in valuation model
- TSLA, NIO, LI, and XPEV all saw positive market reactions
- FSD v12 hardware and closed-loop testing indicate commercialization acceleration
Bank of America has raised its price target for Tesla (TSLA) following new evidence of advanced autonomous vehicle testing, including multiple cybercab prototypes observed at Tesla’s Gigafactory in Texas. The firm now assigns a higher valuation to Tesla, attributing a significant portion of the upside to monetization potential from a robotaxi fleet expected to launch by 2027. This marks a strategic shift in how Wall Street assesses Tesla’s long-term earnings power beyond vehicle sales. The revaluation reflects a growing consensus that Tesla’s Full Self-Driving (FSD) software, combined with in-house vehicle architecture, positions the company as a frontrunner in the autonomous mobility space. BofA estimates that robotaxi operations could contribute $150 billion in cumulative revenue over the next decade, with a 20% gross margin on ridesharing services. This projection assumes a fleet of 10 million vehicles in operation by 2030, a number that aligns with Tesla’s production capacity roadmap. The market has responded swiftly: Tesla shares rose 7.3% in early trading, outperforming the broader S&P 500. Competitors in the electric vehicle sector, including NIO (NIO), Li Auto (LI), and XPeng (XPEV), also saw gains, with NIO up 5.1% and LI rising 4.7%. Investors are reassessing the long-term value of autonomous vehicle platforms, particularly for firms investing heavily in AI-driven mobility infrastructure. The sighting of cybercabs—vehicles equipped with sensor arrays and FSD v12 hardware—confirms that Tesla is advancing beyond simulation and into real-world testing. These vehicles are believed to be part of a closed-loop validation program, targeting regulatory approval and safety certification for commercial deployment. The development accelerates the timeline for autonomous ride-hailing services, potentially reshaping urban transportation and fleet economics.