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Tesla’s $1.2T Comeback: Why the EV Titan's Rally Isn’t Over

With breakthroughs in self-driving tech and robotics, BofA analysts see even more upside ahead for investors.

Author

Evelio Silvera
December 09, 2024

Why It Matters:


Tesla’s +5.34% surge to $389.22 marks its highest close since early 2022. With breakthroughs in self-driving tech and robotics, BofA analysts see even more upside ahead for investors.

Zoom Out:

Tesla’s stock has climbed 56.6% year-to-date, outpacing the S&P 500’s +27.7% gain. With a market cap surpassing $1.2 trillion, Tesla ($TSLA) is once again proving it’s a force to reckon with in the EV and AI race.

At the core of this rally is the company's ability to expand its addressable market, driven by the 2025 launch of lower-cost EVs (under $30,000 with tax credits). Meanwhile, Tesla’s robotaxi ambitions and Optimus robot development are shaping up to be game-changers in AI and autonomous tech.

BofA’s bullish sentiment, backed by a $400 price target, reflects growing confidence in Tesla’s ability to not just compete, but dominate emerging markets.

Key Drivers:

  • Affordable EVs Coming: Tesla’s plan to launch sub-$30K vehicles in 2025 could significantly broaden its consumer base, especially with current tax incentives.

  • Full Self-Driving (FSD) Milestone: Analysts were impressed by Tesla’s FSD progress, suggesting the company is on track to safely launch its robotaxi business within 18 months.

  • Optimus Robotics Are Real: With 1,000 robots expected by late 2025, Optimus could revolutionize manufacturing and pave the way for scalable AI-driven robotics by 2026+.

Market Pulse:

“At its current valuation, Tesla could raise $50 billion with minimal dilution, fueling its ambitious growth plans,” says John Murphy, BofA analyst.

The Bull’s Take:

Tesla is more than an EV company; it’s a tech and AI powerhouse poised to redefine industries. The combination of affordable EVs, self-driving tech, and robotics could accelerate growth and justify new highs in the stock.

Actionable Takeaway: If you’re looking for exposure to the future of mobility and AI, Tesla remains a long-term bet—but keep an eye on valuation risks as shares hover near record levels.