Tesla Analyst Cuts Target to $150 and Unveils Austin 'Terafab' Chip Plants
Analyst Trip Chowdhry cut Tesla to Sell with a $150 target for 2026, citing an AI narrative collapse after shares closed at $367.96, down 18% year-to-date. Tesla and SpaceX announced two Austin "Terafab" chip plants to produce vehicle, robotics and AI chips, targeting one terawatt of annual processing.
1. Analyst Downgrade to Sell at $150
Analyst Trip Chowdhry, long viewed as bullish, flipped to a Sell recommendation and set a $150 target for 2026 after warning that Tesla’s AI narrative has collapsed. He compared the situation to 3D Systems’ plunge and highlighted Tesla’s 18% year-to-date decline following a $367.96 closing price.
2. Growing Wall Street Skepticism
UBS cut Q1 delivery forecasts to 345,000 vehicles, 7% below consensus, while Morgan Stanley downgraded to Equal-Weight with a $425 target and Bank of America moved to Neutral, citing robotaxi execution risks. Tesla now trades at about 210 times projected earnings, with analyst consensus at 23 buys, 17 holds and 8 sells.
3. Austin 'Terafab' Chip Plant Plans
Tesla and SpaceX plan two 'Terafab' chip fabrication units in Austin, each dedicated to a specific chip design: one for vehicles and robots, the other for AI systems used in space. The project aims to deliver up to one terawatt of processing power annually and reduce reliance on external suppliers.
4. Upcoming Catalysts
Key upcoming events include Tesla’s Q1 delivery report in early April, which will test whether production meets lowered estimates, and the late April earnings call, where management is expected to discuss AI initiatives, robotaxi timelines and the chip plant execution roadmap.