Sell alert? Wall Street expert warns Tesla FSD does not work

Core Viewpoint - The expectation of widespread adoption of autonomous driving vehicles by 2026 is contrasted by growing skepticism regarding Tesla's Full Self-Driving (FSD) technology, leading to potential shorting opportunities for Tesla stock [1][5]. Group 1: Analyst Opinions - Gordon Johnson of GJL Research suggests that Tesla's stock may face a significant decline due to the disconnect between the perceived value of FSD technology and its actual performance [1][3]. - Johnson claims that approximately 80% of Tesla's $1.5 trillion valuation is tied to expectations surrounding autonomous driving and robotaxi services [2]. - He warns of a potential 80% crash in Tesla shares, citing FSD's underperformance compared to human drivers and recent high-profile departures from key project teams [3][4]. Group 2: Market Sentiment - Macfarlane Investors LLC published an article arguing that Tesla's marketing of FSD has been misleading, contributing to a likely deep correction in stock price [5]. - The article highlights that only one or two unsupervised autonomous vehicles are observed on the streets, questioning the actual deployment of FSD technology [6]. - It notes a steady decline in Tesla's core EV sales, both in absolute terms and market share in critical regions like the U.S. and the EU [6][7]. Group 3: Valuation Concerns - Tesla's current valuation is noted to be extraordinarily high at 376 times earnings, which may not be sustainable without a rapid recovery in core business performance or successful delivery on technological promises [7]. - The historical context of Elon Musk's tendency to make unrealistic promises raises concerns about the sustainability of Tesla's stock value [9].