For Tesla (NASDAQ: TSLA) shareholders, 2026 is shaping up to be one of the toughest years yet. The stock has stayed in the red for the past six months. Over that stretch it touched a high of $451 before sliding to a low of $348, then found its footing in the second quarter and pushed back above $400. When markets opened on Wednesday, TSLA was trading at $404. Despite the bearish mood, Bank of America told clients in a research note that the electric vehicle maker could bottom out right around this level and rally from here. That puts TSLA firmly on the watch list, with a real chance of turning higher.
What Is Bank of America's Price Target?
Bank of America expects Tesla shares to reach as high as $460 next. For anyone taking an entry position today, that works out to a gain of $56 per share. Measured against the current price of $404, it translates into an uptick and return on investment (ROI) of roughly 14%. Put another way, a $1,000 investment could turn into $1,140 in profit.
Buying Tesla at this level, or stepping in on the dips if it slips below the $400 range, could pay off and open the door to further gains.
Why the Bank Is Betting on FSD and Optimus
Analysts at Bank of America pointed out that Tesla's full self-driving (FSD) system is significantly cheaper than the setups offered by its rivals. The note also spotlighted the Optimus humanoid robot, which it sees as capable of disrupting the manufacturing sector.
The bank wrote that while Optimus is currently aimed at commercial use, the longer-term goal is to bring it into homes. The day Tesla's products are used for domestic consumption, such as household chores, the company as we know it today will be completely transformed. That deeper AI integration would make Tesla far more sophisticated and could reshape the fortunes of its stock. On that basis, the analysts argue that holding on to TSLA for the next five to 10 years should prove profitable for traders.
