Tesla is the leader in physical AI but valuation is stretched, says BofA By Investing.com
Update: 2025-10-29
Description
Bank of America raises Tesla's price target to $471, reflecting progress in robotaxi development and Optimus robot expansion. Despite a higher valuation, the bank maintains a Neutral rating due to increased operating expenses for AI and R&D. Tesla's Q3 revenue surged 12% to $28.1B, with record vehicle sales, but automotive profit margins dipped due to higher costs and tariffs. The energy unit shone with over 31% margins. North American car sales may face pressure, but there's optimism for energy projects and robotaxi rollout.
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