SKN | Bank of America Maintains Buy Rating on Tesla as Robotaxi Miles Double, but Cuts 2027 Earnings Forecast

Key Takeaways:

• Bank of America described Tesla’s Robotaxi service as reaching an “inflection point,” citing accelerating unsupervised mileage growth.
• Analyst Alexander Perry maintained a Buy rating and a $460 price objective, while reducing the bank’s 2027 earnings-per-share estimate from $2.47 to $2.26.
• The bank’s assessment highlights the distinction between Robotaxi growth potential and the earnings performance needed to support Tesla’s valuation.

Bank of America Sees a Turning Point in Tesla’s Robotaxi Expansion

Bank of America has strengthened its focus on Tesla’s autonomous-driving opportunity, with analyst Alexander Perry describing the company’s Robotaxi service as having reached an “inflection point” in a research note dated October 22.

The bank’s assessment rests on the acceleration of unsupervised Robotaxi mileage. According to Perry, cumulative miles increased from approximately 380,000 on July 22 to 1 million by September 3, before reaching roughly 2 million by September 30. The doubling in mileage over approximately four weeks provides a measurable indicator of the service’s expansion.

Bank of America also pointed to weekly growth accelerating from 17% to approximately 20% following the addition of Tesla’s two-seat Cybercab to its Austin fleet. Cybercabs reportedly accounted for 45% of the Texas fleet, according to the research note.

For the bank, these developments support the case that Robotaxi is progressing beyond a purely prospective opportunity. Perry attributed Tesla’s ability to scale more rapidly in part to the use of a more advanced version of Full Self-Driving software than that available to the consumer fleet.

A $460 Price Objective Comes With Lower Earnings Expectations

Despite its constructive assessment of Robotaxi, Bank of America did not raise its earnings forecast. Perry maintained the bank’s Buy rating and $460 price objective, which represented approximately 19% upside from the $386.47 reference price used in the report.

At the same time, he cut the bank’s estimate for Tesla’s 2027 earnings per share to $2.26 from $2.47. That adjustment is important: the stronger operational trajectory of Robotaxi has not eliminated the need to reassess the company’s earnings outlook.

The combination signals a differentiated investment judgment. Bank of America remains positive on Tesla’s potential, while its lower earnings estimate reflects a more cautious near-term or medium-term profit outlook. The supplied information does not specify the precise reasons for the earnings revision, so it should not automatically be attributed to Robotaxi investment costs or vehicle sales.

Why Tesla’s Core Business Still Matters

Tesla’s reported quarterly performance provides important context. Revenue was flat at $28.05 billion, while adjusted earnings of $0.48 per share exceeded estimates, according to the supplied report.

For investors, the implication is that Robotaxi’s expanding mileage may increasingly influence expectations, but the established automotive business remains financially relevant. Bank of America’s position therefore rests on the opportunity represented by autonomous mobility alongside the need to monitor earnings delivery.

For high-net-worth investors, the key lesson is to distinguish a bank’s positive valuation stance from certainty about future results. Robotaxi execution, earnings revisions and the durability of Tesla’s core business remain essential considerations when evaluating exposure to the stock.

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