Tesla is sliding — and Wall Street is split right down the middle.
Shares closed at $389.81 on March 9, down 3.9% in a single session, extending a brutal retreat that has kept the stock well below its December peak near $490. The selling has been relentless, and the charts are not painting a pretty picture for short-term holders.
Yet some of the biggest names in finance are not blinking.
What the charts are saying
The technical setup for Tesla right now is anything but encouraging. Here is where things stand:
- Immediate support sits between $385 and $390 — the short-term floor that has held during recent trading
- Next support drops to around $360 if that floor breaks
- Resistance sits between $405 and $410, where the stock has repeatedly stalled
- Stronger ceiling near $420, close to the 200-day moving average — the level Tesla must reclaim to shift momentum
- RSI hovering in the low-40 range, reflecting weak buying interest without flashing oversold conditions
- MACD remains in negative territory, signaling continued near-term pressure
Until Tesla clears $420 and holds, sellers remain firmly in control.
Why Bank of America is still bullish on Tesla
Despite the bruising chart action, Bank of America renewed its Buy rating with a $460 price target. Analyst Alexander Perry laid out three core reasons for the conviction:
- Robotaxi leadership — There is a strong opportunity to lead the emerging robotaxi market as the technology matures
- Camera-only advantage — Unlike rivals that rely on expensive lidar and radar systems, a leaner architecture is cheaper to scale and could generate stronger margins
- Data moat — A global fleet continuously feeds real-world driving data into its autonomous software, a feedback loop competitors cannot easily replicate
Tesla’s bull case goes way beyond selling cars
Bank of America’s long-term valuation tells a story that has little to do with vehicle deliveries:
- Robotaxi services could represent roughly 52% of Tesla‘s total enterprise value
- Full Self-Driving already has approximately 1.1 million subscribers, with growth expected as higher autonomy levels launch
- Optimus humanoid robot project valued at more than $30 billion
- Energy storage business valued at more than $90 billion
That is a long-term thesis built on businesses that barely exist yet.
The headwinds Tesla cannot shake
The bull case carries real friction. Tesla’s challenges right now are hard to ignore:
- UK vehicle registrations fell 45.2% year over year in February, dropping to 2,208 units from 4,030 a year earlier
- Revenue declined 3% in the most recent fiscal year to $94.83 billion — the company’s first annual top-line drop
- Automotive revenues fell 10%
- Tesla trades at roughly 200 times forward earnings, pricing in a future that has yet to materialize
What happens next for Tesla
In the near term, Tesla shares are likely to remain rangebound between $385 and $410 as the market continues wrestling with macroeconomic signals and EV sector sentiment. A sustained push above $420 would open a path toward $440 and eventually the $465 resistance zone.
Until that happens, the bears have the edge — but the bulls are not going anywhere.
