11:54 AM EST, 01/07/2025 (MT Newswires) -- Tesla's (TSLA) latest valuation already reflects long-term growth potential, including its robotaxis, BofA Securities said Tuesday in a note.

"Tesla is trading at a level that captures much of our base case long-term potential from core autos, robotaxi, Optimus, and energy generation & storage," BofA said, noting that robotaxis account for about 50% of the stock valuation.

BofA has updated its financial estimates for Tesla, with fiscal 2024 earnings per share now expected at $2.42 on revenue of $99.28 billion, down from its prior forecasts of $2.45 on revenue of $100.16 billion.

The firm raised its 2025 EPS estimate to $3.15 on revenue of $113.74 billion, from $2.95 on revenue of $110.45 billion.

The brokerage raised its price objective for the stock to $490 from $400. While the higher price objective suggests an upside, the firm warned that "execution risk is high," prompting to downgrade its stock rating for Tesla to neutral from buy.

Tesla shares were down more than 3% in recent trading.

Price: 396.56, Change: -14.49, Percent Change: -3.52