Bank of America Sees Tesla's Optimus Robot as a Growing Opportunity

Bank of America analyst John Murphy has raised Tesla's price target, citing the potential of the Optimus robot and its increasing resource allocation.
Bank of America Sees Tesla's Optimus Robot as a Growing Opportunity
Bank of America (BofA) analyst John Murphy has increased Tesla's stock price target, highlighting the potential of the Optimus robot. While currently used for menial tasks in Tesla factories, Optimus's role is expected to expand significantly. Murphy points out that Optimus currently utilizes a small percentage of Tesla's compute resources. However, as robotaxi technology matures, more resources will likely be allocated to Optimus development. "Optimus accounts for only a single-digit percentage of TSLA’s compute, but we expect the resources available for Optimus will grow as the robotaxi technology matures." Tesla aims to deploy around 1,000 Optimus robots in its factories by the end of 2025. This increased usage should, in turn, free up more compute resources, accelerating Optimus's capabilities and potentially leading to increased production and lower costs in 2026 and beyond. JUST IN: TESLA $TSLA PRICE-TARGET RAISED TO $400 (FROM $350) AT BANK OF AMERICA -- A…

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