Tesla stock falls 3.9% despite BofA resuming coverage with Buy rating

Highlights

Tesla stock fell 3.9% to $389.81, with technical indicators confirming sellers’ dominance as the price trades below key resistance near $400–$420.
Bank of America reaffirmed its Buy rating and a $460 target, mentioning Tesla’s strong positions in autonomous driving, robotaxi services, and Full Self-Driving software.
In the near term, the stock may trade between $385 and $410, but a breakout above $420 may contribute to the further growth of about 20-30%.

From a technical perspective, Tesla’s chart shows a consolidation phase after the strong rally in the second half of 2025. As the stock remains below its December peak near $490, it continues trading within a descending channel. It was tested several times over the past several weeks.

The immediate support zone sits between $385 and $390. It has served as a short-term floor during recent trading sessions. A break below this area could create additional selling pressure toward the next technical support around $360. On the upside, the first resistance is near $405–$410. This range corresponds to the area, where Tesla has faced repeated rejections in recent sessions. A stronger barrier lies around $420, which is close to the 200-day moving average. As long as the stock remains below this MA, the short-term incentive will belong to bears.

Tesla stock performance (January 2026 – March 2026). Source: TradingView.

Momentum indicators also point to the current neutral-to-bearish tone. The Relative Strength Index remains close to the low-40 range. It means weak buying pressure without entering the oversold territory. However, the MACD indicator remains negative, implying the corrective trend is likely in the near term.

Bank of America backs Tesla’s autonomy strategy

Bank of America has renewed its coverage of Tesla with a Buy rating. Its $460 price target is attributed to the company’s leadership in consumer autonomous technology. The experts believe in Tesla’s strong positions in the next phase of the automotive industry. Analyst Alexander Perry emphasized Tesla’s growing role in the emerging robotaxi ecosystem. He assumes that the company has a clear opportunity to dominate autonomous mobility services with the further technology evolution.

The main advantage identified by BofA is Tesla’s camera-only approach to autonomous driving. While technically more challenging, this strategy is cheaper than the multi-sensor systems used by its competitors. The reason is that they rely on lidar and radar. According to the bank, the new cost structure could allow Tesla to scale its robotaxi network and achieve higher profitability over time. The company also benefits from a data advantage generated by its global fleet of vehicles. It ensures a continuous stream of real-world driving information supported by its autonomous software.

Beyond autonomous mobility, Bank of America also highlighted additional growth drivers supporting Tesla’s long-term valuation. The bank estimates that robotaxi services could account for roughly 52% of Tesla’s enterprise value in the future, while the Full Self-Driving software platform already has about 1.1 million subscriptions and could see faster adoption as higher levels of autonomy are introduced. At the same time, Tesla’s Optimus humanoid robot and energy storage business represent additional opportunities, with BofA valuing these segments at over $30 billion and $90 billion respectively, reinforcing a bullish long-term outlook for the company.

Price scenarios suggest volatility around key levels

In the base scenario, Tesla shares may trade within a consolidation range between $385 and $410. This may continue for the next several weeks. This area reflects market uncertainty as investors try to integrate macroeconomic signals with news from the EV sector.

A bullish scenario requires a breakout above $420. If bulls reclaim this level and hold above moving averages, the stock will regain upward momentum toward $440. It will also potentially test the $465 resistance zone.

Tesla’s UK vehicle registrations fell 45.2% year over year to 2,208 units in February from 4,030 a year earlier. The sharp decline highlights growing volatility in Tesla’s European sales as demand across the region continues to weaken.

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