Tesla downgraded to Neutral at BofA with future catalysts more fully recognized

As previously reported, BofA analyst John Murphy downgraded Tesla (TSLA) to Neutral from Buy with a price target of $490, up from $400. Since the firm’s previous upgrade in April of last year, news flow and investor sentiment have “shifted more positively” and catalysts around future growth drivers have been “more fully recognized,” most notably for Robotaxi, the analyst tells investors. Execution risk remains high and the stock is now trading at a level that captures much of the firm’s long-term base case for potential from core autos, robotaxi, Optimus, and energy generation and storage, the analyst added.