BofA Global Research's recent downgrade of Tesla from "Buy" to "Neutral" has sparked discussions among investors, primarily due to concerns over valuation and execution risks. Despite raising the price objective to $490, BofA highlights that Tesla's current trading levels already incorporate much of its long-term potential, especially in its automotive, robotaxi, and energy sectors. The anticipated launch of the robotaxi segment in 2025 is a key growth driver, accounting for a significant portion of Tesla's valuation. However, the report also points to high execution risks, including the rollout of new models and potential policy changes, which could impact Tesla's ambitious plans.
The T-Rex 2X Inverse Tesla Daily Target ETF (TSLZ) experienced a slight decline, dropping 0.4% to $2.51 as of 6:40 AM on Wednesday, January 8.