Bank of America Lowers Tesla Price Target Amid Mixed Earnings Report

Bank of America has lowered its price target for Tesla’s stock to $120, citing a more cautious view on the electric vehicle giant’s future profits. The analyst firm said that while Tesla’s robotaxi business is expected to be a major driver of growth in the coming years, the company still faces significant challenges and uncertainties. The new target is below the bank’s previous estimate of $150 per share, highlighting the growing skepticism among investors about Tesla’s ability to deliver on its ambitious plans. Bank of America noted that Tesla’s earnings report last week showed mixed results, with revenue beating expectations but profit margins coming in lower than anticipated. The firm also expressed concerns about the company’s cash burn and the ongoing competition in the electric vehicle market. “We are reducing our price target for Tesla to $120 from $150,” Bank of America said in a note to clients. “While we continue to believe that Tesla’s robotaxi business will be a key growth driver, our current assumptions around profit margins and cash burn have been revised downward.” The firm also pointed out that the recent sighting of Cybercabs at Tesla’s factory in Texas suggests that the company may be accelerating its plans for the robotaxi service. “The presence of Cybercabs at Tesla’s factory is a positive sign that production is moving forward as planned,” Bank of America said. Despite these positives, Bank of America remains cautious about Tesla’s prospects. “We are waiting to see how Tesla executes on its growth strategy and whether it can overcome the challenges in its path,” the firm said.