A prominent Tesla bull has made a dramatic shift, issuing a sell recommendation and forecasting a plunge to $150 for the electric vehicle maker's stock. Trip Chowdhry of Global Equities Research, known for his previously optimistic stance on Tesla, cited a collapse of the company's AI narrative as the primary reason for the downgrade.
Chowdhry's call adds to growing skepticism surrounding Tesla's valuation and near-term prospects. Tesla shares closed at $367.96 on Friday, March 20, marking an 18% year-to-date decline. The analyst firm claims an 85% success rate on its calls, further fueling the impact of the downgrade. Chowdhry drew parallels to 3D Systems Corporation, a stock his firm predicted would collapse.
The bearish sentiment is also echoed by other analysts. UBS recently cut its Q1 2026 delivery estimates for Tesla, projecting 345,000 units, an 18% decrease from Q4 2025. Morgan Stanley downgraded Tesla in December 2025, citing that high expectations for AI have brought the stock closer to fair valuation. Bank of America also downgraded the stock, highlighting concerns about robotaxi services.
Tesla faces increasing challenges, including weakening global EV demand, intensified competition, and squeezed profit margins. Regulatory scrutiny of Tesla's Full Self-Driving (FSD) technology adds another layer of uncertainty. Despite CEO Elon Musk's plans to expand Tesla's semiconductor ambitions, the market remains concerned about the company's near-term performance.
