Alexander Perry has resumed coverage of the major North American automakers at BofA Securities, the investment division of Bank of America.
Perry, who serves as Head of North American Autos Research, replaces Federico Merendi, who returned to Wolfe Research after three and a half years with Bank of America’s equity research team.
The analyst has taken a generally more bullish stance on the stocks than his predecessors, including both Federico Merendi and John Murphy, who covered the auto sector for Bank of America until last year.
Ford
In a new research note published on Wednesday, the analyst set a price target of $17 on Ford Motor Co., with a Buy rating on the Detroit automaker’s stock.
The target implies an upside potential of 33.9% on Ford‘s shares, based on Tuesday’s closing price of $12.70.
Ford‘s stock has jumped 31.6% in the last 12 months despite the 12.0% decline recorded in the past seven days.
According to Perry, BofA’s valuation of the company is based on 3.8 times its adjusted EBITDA (earnings before interest, tax, depreciation and amortization) estimates for 2027.
“We think Ford is positioned well to capitalize on the significant shift in the regulatory backdrop under the current administration,” the analyst wrote, adding that it “should enable it to shift focus to its most margin accretive trucks/SUVs.”
Ford stopped production of the segment leader, fully electric Ford F-150 Lightning late last year, with CEO Jim Farley citing low interest for “high-end EVs.”
The company is shifting focus towards internal combustion engine (ICE) and hybrids models instead, while preparing to launch a more affordable electric pick-up truck under its Universal EV Platform.
In December, Ford reported a loss of $19.5 billion as it restructured its EV business.
By then, the automaker said it expected its ‘Model e’ business to become profitable by 2029.
Last month, upon disclosing its fourth-quarter earnings results, the company announced that its EV unit lost $4.8 billion in 2025 and was expected to lose $4 billion to $4.5 billion in 2026.
However, analysts have largely maintained a positive outlook on Ford.
Late last year, UBS analyst Joseph Spak called the $20 billion write-down a “bold action.”
This Wednesday, BofA’s Alexander Perry sees “near term benefits as Model E losses abate, and the company’s high-margin commercial business stabilizes.”
Additionally, the analyst expects Ford to “make progress toward its 8% EBIT [earnings before interest and taxes] margin guide, including a large step-up in 2027.”
Tesla
Alexander Perry assumed coverage of Tesla, setting a Buy rating and $460 price target on the stock.
In the latest research note, published on October 29, 2025, by Federico Merendi, Bank of America had reiterated a Neutral rating on the Elon Musk-led company’s stock.
Tesla closed 2.7% down at $392.43 on Tuesday’s trading session. Based on that value, BofA’s updated target implies a 17.2% upside potential on the stock.
The company’s stock climbed to an all-time high of $498.83 in late December, before ultimately dropping to below $400 in February.
In a new research note, the analyst emphasized the value the firm assigns to Tesla‘s humanoid robotics and energy businesses.
“We value Optimus, Tesla‘s humanoid segment, at over $30 billion,” Perry wrote, signaling that this is worth 2% of the company’s valuation.
To him, “Optimus will likely first be used in manufacturing and possibly replace a portion of the 13 million US manufacturing jobs, with future adoption in households.”
Musk said earlier this year it’s “probably true” that people will forget Tesla ever built cars after the company launches the Optimus V3, which is scheduled for later this year.
The humanoid robot will be built at GigaTexas, on the manufacturing lines formerly dedicated to production of the Model S and Model X.
Bank of America also values Tesla‘s energy business at $90 billion, representing 6% of the company’s valuation, Perry stated.
The firm expects “Tesla to have leading share with its residential Powerwall batteries and its Megapacks for use by utilities & data centers.”
Lucid and Rivian
Alexander Perry also resumed coverage on the US EV makers Lucid Motors and Rivian, both headquartered in California.
The analyst reiterated an Underperform rating on the Marc Winterhoff-led company, with a $10 price target — matching the $1.00 (pre-reverse split basis) the firm set in August last year.
Lucid’s stock has crashed by nearly 99% from its peak five years ago and hit a new record low last week at $8.90 immediately after the earnings release — equivalent to $0.89 pre-reverse split.
Based on Tuesday’s closing price of $10.11, BofA’s price target implies a 1% decline on the stock.
Last October, the firm’s analyst Federico Merendi maintained a $10 price target on Rivian as well, with an Underperform rating on the stock.
Rivian‘s stock climbed to a 2025 high of $22.45 on December 22 after the company’s Autonomy Day, before giving up those gains and falling by nearly $10 during the first two months of 2026.
Following better-than-expected fourth-quarter results reported on February 12, its shares surged more than 15%, but later retreated to levels seen prior to the earnings release.
The Irvine-based EV maker’s stock has closed at $15.10 on Tuesday.
The stock has been under pressure as investors anticipate the launch of the upcoming R2 mid-size SUV, which is expected to increase demand for the company’s vehicles.
