Bank of America revamps Tesla forecast before earnings

Bank of America raised Tesla’s multi-year forecasts and reaffirmed a Buy rating with a $460 target ahead of Q2 earnings on July 22, 2026. The note points to stronger-than-expected Q2 deliveries, expanding robotaxi operations, and optionality from Optimus and energy storage as key drivers of upside. BofA lifted 2026–2028 revenue estimates and EPS estimates, implying a more constructive near-term recovery and early monetization of Tesla’s autonomy and AI initiatives. However, the report also highlights that much of the valuation relies on long-dated assumptions, while free cash flow is forecast to turn negative in 2026 and stay negative through 2028. The market takeaway is bullish on Tesla’s growth narrative and price target, but the stock still depends heavily on execution in robotaxi rollout, margins, and cash generation.