Long-time Tesla bull flips to sell, sees stock plunging to $150 amid AI concerns
Investing.com — Trip Chowdhry, a historically bullish analyst on Tesla Inc (NASDAQ:TSLA), issued a stark sell recommendation to clients, setting a $150 price target for 2026 and warning that the electric vehicle maker’s AI narrative has collapsed. The call comes as Tesla shares closed at $367.96 on Friday, extending the stock’s year-to-date decline to 18%.
Chowdhry drew a dramatic comparison to 3D Systems Corporation (NYSE:DDD), which he claims his firm Global Equities Research correctly predicted would collapse from its $84 peak in 2013 to its current price of $1.93. “TSLA/xAi Story based investment thesis is over,” Chowdhry wrote in a note to clients, adding that “waiting for TSLA/xAI to come up with their next story for Stock to move up is utterly foolish.”
The analyst, whose firm claims an approximately 85% success rate on calls, challenged investors to provide evidence that Tesla is not “AI Illiterate” and warned against “investment thesis inertia” that he says misled 3D Systems investors years ago. “We were proven to be right on DDD then and we will be proven right on TSLA even now,” Chowdhry stated, urging clients to “take profits on TSLA, while you still can.”
Chowdhry’s bearish call adds to growing analyst skepticism about Tesla’s valuation and near-term prospects. UBS analyst Joseph Spak recently cut Q1 2026 delivery estimates to 345,000 vehicles, down 18% from Q4 2025’s 421,000 deliveries and 7% below consensus expectations of 371,000, while maintaining a Sell rating with a $352 price target.
Morgan Stanley downgraded Tesla to Equal-Weight from Overweight in December 2025, with analyst Andrew Percoco setting a $425 price target and noting that “high expectations” on AI have brought the stock “closer to fair valuation.” Bank of America similarly downgraded to Neutral from Buy, flagging that robotaxi services account for roughly 50% of Tesla’s current valuation despite high execution risks.
The stock trades at roughly 210 times projected earnings over the next 12 months, making it the second-most-expensive company in the S&P 500. Current analyst consensus shows 23 buy ratings, 17 holds, and 8 sells with an average price target of $421.27.
Investors should monitor Tesla’s Q1 2026 delivery announcement expected in early April, which will test whether demand has deteriorated to UBS’s 345,000 estimate or holds closer to the 371,000 consensus. Management commentary during the late April earnings call on AI initiatives, robotaxi timeline, and margin trends will be critical to assessing whether the company can justify its premium valuation.