Analyst's Shift to Sell Recommendation#
Trip Chowdhry, an analyst known for his positive outlook on Tesla Inc (NASDAQ:TSLA), has made a surprising turn by issuing a sell recommendation. He has set a price target of $150 for 2026, citing concerns that the company's artificial intelligence (AI) narrative has faltered. As of Friday, Tesla shares closed at $367.96, marking an 18% decline this year.
Comparison to Past Predictions#
Chowdhry compared Tesla's situation to that of 3D Systems Corporation (NYSE:DDD), which he claims his firm, Global Equities Research, accurately predicted would drop from a peak of $84 in 2013 to just $1.93 today. He emphasized that the investment thesis surrounding Tesla's AI capabilities is no longer viable, urging investors not to wait for new developments that could boost the stock price.
Growing Skepticism on Wall Street#
Chowdhry's bearish outlook adds to a wave of skepticism from other analysts regarding Tesla's valuation and short-term performance. UBS analyst Joseph Spak has reduced the company's delivery estimates for Q1 2026 to 345,000 vehicles, which is 18% lower than previous estimates. Morgan Stanley and Bank of America have also downgraded their ratings on Tesla, citing high expectations for AI and the risks associated with its robotaxi services.
What Investors Should Watch#
Investors are advised to keep an eye on Tesla's upcoming Q1 2026 delivery announcement, expected in early April. This will help determine if demand aligns with UBS's lower estimate or the higher consensus of 371,000 vehicles. Additionally, insights from the late April earnings call regarding AI initiatives and robotaxi timelines will be crucial for assessing whether Tesla can maintain its high valuation. The stark difference in price targets among analysts reflects significant uncertainty about Tesla's future performance.