Bank of America reinstated coverage of Tesla with a buy rating and $460 price target, highlighting its leadership in autonomous driving technology. The firm also initiated coverage of General Motors with a buy rating and $105 price target, emphasizing the profitability of its trucks and SUVs. These moves reflect contrasting bets on the future of transportation amid shifting market dynamics.
On March 4, 2026, Bank of America Securities analyst Alexander Perry made bullish calls on two major automakers. For Tesla (Nasdaq: TSLA), the firm reinstated a Buy rating with a $460 price target, above the consensus of $420.90. Tesla shares traded at $399.95 that morning, implying about 15% upside, and rose 3.58% that day following the announcement.
BofA described Tesla as the current leader in consumer autonomy, driven by its Full Self-Driving (FSD) technology and camera-only Tesla Vision architecture. This approach, though technically challenging, is cheaper to produce and maintain than rivals' multi-sensor systems. The firm attributes 52% of Tesla's valuation to its robotaxi ambitions, with the service launched in Austin in June 2025 and expanding to Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of 2026. Cybercab volume production is set to start in 2026.
Tesla's FSD Supervised fleet has accumulated 8.4 billion miles as of early 2026, up from 4.25 billion in 2025 alone, providing a vast dataset for neural network training. Despite a 16% year-over-year drop in Q4 2025 vehicle deliveries, gross margins expanded 386 basis points to 20.1%. The energy segment achieved record Q4 deployments of 14.2 GWh, with revenue up 25% year-over-year, and cash reserves reached $44.059 billion, a 173% increase.
In contrast, BofA initiated coverage of General Motors (NYSE: GM) with a Buy rating and $105 price target, suggesting 33% upside from $79.07 and above the $94.62 consensus. The thesis focuses on GM's dominance in profitable trucks and SUVs, holding 32.7% U.S. truck market share in Q1 2025 and 17.2% overall U.S. share in Q4 2025, with North America capacity utilization at 104.7%.
GM recorded $7.2 billion in EV restructuring charges in Q4 2025, but 2026 guidance projects adjusted EPS of $11.00 to $13.00 and EBIT-adjusted of $13.0 to $15.0 billion. CEO Mary Barra stated on the earnings call: “We believe that formula is sustainable, which is why we’re increasing our dividend and planning future share repurchases.” This includes a 20% dividend increase and $6 billion buyback authorization.
While BofA is optimistic, challenges persist for both. Tesla faces regulatory scrutiny on autonomy, declining 2025 deliveries, and demand concerns in markets like China and Europe. GM benefits from regulatory tailwinds easing EV pressures, allowing focus on internal combustion engine vehicles.
