Bank of America had the Midas touch with research on Tesla Inc (NASDAQ:TSLA), which added almost $37 billion to the EV maker's value overnight.
Stock in Elon Musk's car giant advanced 3.2% on the back of the note, following analysts' visit to the company's Gigafactory in Austin, Texas.
BoFA's lead analyst John Murphy, in a note to investors, expressed confidence in Tesla's potential for growth beyond 2025, citing the strength of its electric vehicle (EV) lineup, upcoming robotaxi services, and advancements in its Optimus humanoid robot.
Murphy highlighted Tesla's plans to launch a low-cost EV priced below $30,000 by mid-2025, which he believes will significantly expand the company’s market reach.
This vehicle is expected to achieve lower production costs through design changes such as improved motor efficiency, smaller batteries, and simpler interiors.
The BoFA analyst reiterated his 'buy' rating for Tesla and raised its price target from $350 to $400.
The stock closed at $369.49.