According to Sawyer Merritt, Bank of America has increased its Tesla price target to $471, highlighting that AI-powered segments now dominate Tesla's valuation. The report finds that Tesla's core automotive business accounts for only 12% of its total value, while AI-driven robotaxi services represent 45%, Full Self-Driving (FSD) systems 17%, and the Optimus AI robot 19%. These figures signal a significant shift in market perception towards Tesla's AI and autonomous technology business lines, underscoring the expanding business opportunities in autonomous vehicles, robotics, and AI-driven energy solutions (Source: Sawyer Merritt on X, Oct 29, 2025).

According to Sawyer Merritt, Tesla Chair Robyn Denholm stated to Bloomberg that the company will equip its AI-powered Cybercab with a steering wheel and pedals if required by regulators. This move highlights Tesla's adaptive strategy in autonomous vehicle deployment, ensuring regulatory compliance while advancing AI-driven mobility solutions. The decision reflects a practical business approach for faster market entry and wider adoption of self-driving technology, addressing both AI innovation and regulatory hurdles (Source: Sawyer Merritt on Twitter, Bloomberg).

According to Sawyer Merritt, legacy automakers such as Ford and GM excel in mass manufacturing vehicles but lag in developing advanced self-driving AI, while tech giants like Google’s Waymo lead in autonomous technology but lack large-scale production capabilities. Tesla stands out as the only Western company with both expertise, thanks to its vertical integration. This gives Tesla a significant business edge in designing scalable, cost-effective robotaxi platforms, controlling both hardware and AI software development. In contrast, Waymo relies on third-party manufacturers like Zeekr for its sixth-generation vehicles, and traditional automakers are likely to license autonomous driving technology from external providers. This strategic positioning enables Tesla to optimize robotaxi design, reduce costs, and accelerate market adoption, creating substantial business opportunities in the autonomous mobility sector. (Source: Sawyer Merritt on Twitter)