Tesla shares soared more than 3% after Bank of America (BoA), a major U.S. investment bank, raised its target price for the company.
On Thursday, Tesla closed at $369.49 on the New York Stock Exchange, up 3.23% from the previous trading day. The company’s market capitalization increased to $1.186 trillion.
In a report released the same day, BoA maintained its buy investment rating while raising Tesla’s target price from $350 to $400, suggesting an additional potential upside of 8.40% from the current stock price.
John Murphy, BoA’s lead analyst, stated that his visit to Tesla’s Austin, Texas, factory reinforced his belief that Tesla is well-positioned for growth in its core electric vehicle business through 2025. He also expressed confidence in Tesla’s long-term growth prospects, particularly with its humanoid robot, Optimus.
Murphy highlighted that Optimus was especially impressive. Tesla plans to deploy 1,000 Optimus robots at its Austin factory by the end of 2025.
Meanwhile, Tesla’s stock has surged nearly 53% since Donald Trump’s presidential election victory on November 5. Year-to-date, the stock has risen 48%.