Tesla stock rose on Wednesday after catching an upgrade at BofA.

Shares of the electric-vehicle maker gained 3.4%, closing at $405.94, while the S&P 500 and Dow Jones Industrial Average added 0.8% and 0.5%, respectively.

Coming into the day, shares were down 9% since the company reported better-than-expected fourth-quarter numbers on Jan. 28. It appears investors have been waiting for a catalyst such as the expansion of Tesla’s robo-taxi network.

A Wall Street ratings change isn’t that, but it helps. BofA reinstated Tesla with a Buy, up from a prior Hold rating, calling Tesla “the current leader in consumer autonomy,” wrote analyst Alexander Perry. Tesla’s Full Self-Driving driver assistance product costs $99 a month and can handle most of a Tesla owner’s daily driving. BofA expects Tesla’s consumer technology to eventually translate into leadership in robo-taxis.

Tesla launched a robo-taxi service in Austin, Texas, in June and plans to be in nine cities in the first half of 2026.

“We see upside from Optimus humanoids, further monetization of FSD, and energy generation & storage,” Perry added. He values Optimus at about $30 billion, adding that it will reach its full potential in the 2040s.

Robo-taxis and Full-Self Driving account for about 70% of his $460 price target. The average analyst price target for Tesla stock is $427. And with the upgrade, 44% of analysts covering Tesla rate its shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 55%.

Coming into Wednesday trading, Tesla stock was down 13% this year, but up 44% over the past 12 months.

Along with Tesla, Perry launched coverage of several other stocks. He rates Ford Motor and General Motors shares Buy, too. His GM price target is $105. His Ford target is $17.

Ford stock closed up 0.9% at $12.81. GM shares gained 1.7%, closing at $78.60.