Tesla (TSLA) shares fell on Tuesday after a Bank of America analyst downgraded the stock from Hold to Buy. TSLA was trading 3.91% lower at 12:26 pm after showing some erratic behavior in early trading.

BofA Securities analyst John Murphy downgraded shares of electric-vehicle maker Tesla to Hold, but his new target price implies about 17% upside.

Tesla stock slipped on Tuesday after Bank of America said it sees shares fairly priced, with some risk to the downside.

The analyst also noted in a CNBC interview that Tesla owners paying the additional $8,000 upgrade for existing vehicles to adopt FSD would result in a big boost in profit margin. That would help provide a return on the huge amount of capital Tesla spends on artificial intelligence (AI) infrastructure to develop FSD.

Key Takeaways NHTSA opened an investigation into Tesla's Smart Summon and Actually Smart Summon features, which allow users to move their vehicles remotely using an app.The regulatory agency has received complaints that Tesla vehicles failed to detect obstacles or parked vehicles,

The National Highway Traffic Safety Administration announced it is investigating nearly 2.6 million Tesla vehicles over a remote driving feature.