Key Points:
- Bank of America gave Tesla a Buy rating with a $460 price target.
- Analyst Alexander Perry says Tesla leads the consumer autonomous vehicle market.
- Tesla builds its robotaxis much cheaper than rivals like Waymo.
- The bank values Tesla’s robotaxi business alone at $844 billion.
Bank of America gave Tesla a huge vote of confidence this week. Analyst Alexander Perry reinstated coverage of the electric car maker with a Buy rating and a $460 price target. Following the news, Tesla shares quickly jumped 3 percent in early trading.
Perry believes Tesla will dominate the future of transportation. He called the company the current leader in consumer autonomy. He expects Tesla to outpace its competitors in the robotaxi race because it can scale up operations much more profitably.
Tesla holds a major technical edge over rivals like Waymo. Most competitors use expensive radar and laser sensors to guide their vehicles. Tesla relies solely on cameras. This approach makes a Tesla robotaxi cost around $40,000 to build, while a Waymo vehicle costs nearly $150,000. The camera system also drains less battery power, giving the cars a better range.
Removing the human driver transforms the business model completely. In a normal $20 Uber or Lyft ride, almost half the money goes directly to the driver. Tesla keeps that cash, creating a massive financial advantage. Perry also thinks riders will prefer robotaxis because they offer better privacy and a smoother experience.
The bank expects Tesla to expand its robotaxi service to seven new cities in 2026. However, safety debates continue to follow the company. Tesla claims its software crashes far less than human drivers, but recent government data shows the opposite. The company also still uses human backup drivers in its current test markets.
Overall, Bank of America values Tesla at $1.625 trillion. Perry links more than half of that value, or $844 billion, directly to the robotaxi business. Traditional car sales only make up 21 percent of the total estimate, showing how heavily investors bet on self-driving technology.
