Tesla received a tip of the hat from major Wall Street firm Bank of America on Wednesday, as it reinitiated coverage on Tesla shares with a bullish stance that comes with a ‘Buy’ rating and a $460 price target.<\/p>\n
In a new note that marks a sharp reversal from its neutral position earlier in 2025<\/a>, the bank declared Tesla\u2019s Full Self-Driving (FSD) technology the \u201cleading consumer autonomy solution.\u201d<\/p>\n Analysts highlighted Tesla\u2019s camera-only architecture, known as Tesla Vision<\/a>, as a strategic masterstroke. While technically more challenging than the multi-sensor setups favored by rivals, the vision-based approach is dramatically cheaper to produce and maintain.<\/p>\n This cost edge, combined with Tesla\u2019s rapidly expanding real-world data engine, positions the company to scale robotaxis far more profitably than competitors, BofA argues in the new note:<\/p>\n “Tesla is at the forefront of autonomous driving, supported by a camera-only approach that is technically harder but much cheaper than the multi-sensor systems widely used in the industry. This strategy should allow Tesla to scale more profitably compared to Robotaxi competitors, helped by a growing data engine from its existing fleet.”<\/em><\/p>\n The bank now attributes roughly <\/span><\/span>52%<\/span><\/span><\/span> of Tesla\u2019s total valuation to its Robotaxi ambitions. It also flagged meaningful upside from the Optimus humanoid robot program and the fast-growing energy storage business, suggesting the auto segment\u2019s recent headwinds, including expired incentives, are being eclipsed by these higher-margin opportunities.<\/span><\/span><\/p>\n Tesla\u2019s own data underscores exactly why Wall Street is waking up to FSD\u2019s potential. According to Tesla\u2019s official safety reporting page, the FSD Supervised fleet has now surpassed <\/span><\/span>8.4 billion cumulative miles<\/span><\/span><\/span> driven.<\/span><\/span><\/p>\n Tesla FSD (Supervised) fleet passes 8.4 billion cumulative miles<\/a><\/p><\/blockquote>\n