The analyst also noted in a CNBC interview that Tesla owners paying the additional $8,000 upgrade for existing vehicles to adopt FSD would result in a big boost in profit margin. That would help provide a return on the huge amount of capital Tesla spends on artificial intelligence (AI) infrastructure to develop FSD.

The shares dropped more than 6% to start a new year of trading after the company reported weaker-than-expected fourth-quarter deliveries.

Wall Street analyst Gordon Johnson, an analyst at GLJ Research, has made a huge bearish prediction about Tesla’s stock. Johnson cited several issues in his warning that the stock could experience huge losses this year.