Tesla Gains Upside On Bofa Rating

last updated on

Tesla Gains Upside On Bofa Rating

Tesla Gains 12% Upside On Bofa Rating Upgrade

Tesla (TSLA) gained a staggering 11.7% upside during the premarket session as the Bank of America revised its rating for the EV maker.

According to the details, the BofA has changed the EV maker's rating to 'BUY' after the release of the Q1 earning report. The rating upgrade was welcomed by Tesla (TSLA) investors as they rushed to buy the stock.

The earnings report of Tesla (TSLA) showed a decline in revenue from around $23.33 billion to $21.30 billion. Additionally, the revenue was also under the forecast of $22.15 billion.

Tesla Net Income Decline By 55%

Another bad thing in the report was a decline in the net income, which reached $1.13 billion with a decline of 55%. This is equivalent to around $0.34 per share against the value of $0.73 last year.

There's no doubt about the fact that Tesla (TSLA) experienced one of the major declines in revenue in almost a decade. However, it seems that the investors focused entirely on the 'earnings call updates.'

The Tesla (TSLA) CEO 'Elon Musk' announced that they will make new EV models with affordability in mind. These models were expected to go through production in 2H2025, but that has changed now to late 2024.

After the release of the earnings call and the Q1 earnings report, the analysts at the BofA changed Tesla's rating from 'Neutral' to 'Buy.'

They added that the results were below expectations but they were not as bad as initially expected. At the same time, the management of the company also addressed various concerns, which provided more clarity on the situation.

Another thing going well for the BofA is the fact that Tesla is all set to receive more good news for the rest of 2024 and 2025.

For now, the BofA has set a price target of around $220 for the Tesla stock. When we look at this target and the trading price of Tesla stock, we see that there is almost a 50% upside!

Trending Stories