Advertisement
As of 9:39 AM on Tuesday, January 7, 2025, Tesla Inc. (TSLA) shares are trading at $407.52, reflecting a 0.86% decrease from the previous close of $411.05. The stock has ranged between $404.50 and $410.43 today, with a market capitalization of $1.305 trillion.
Tesla’s stock declined in early trading following a downgrade by Bank of America analysts, who changed their rating on the stock from Buy to Neutral. While the analysts raised their price target for Tesla from $400 to $490, they cautioned that execution risks remain high, and the current stock price already reflects much of the potential in Tesla’s core automotive business, robotaxi service, Optimus, and energy solutions.
Tesla’s robotaxi service, projected to launch in 2025, remains a key opportunity for the automaker, now accounting for approximately 50% of Tesla’s overall valuation. Analysts estimate that the robotaxi service could be valued at $420 billion in the U.S. and over $800 billion globally. Despite the anticipated slow launch and elevated costs per mile initially, Tesla’s long-term cost advantage over competitors like Uber and Lyft is expected to be substantial, particularly due to the lack of a driver.
Additionally, Bank of America estimates that Tesla’s Full Self-Driving (FSD) technology could reach a $480 billion valuation, though they note that its monetization is still in early stages.
Disclaimer: The information provided is for informational purposes only and does not constitute financial advice.