Analyst cites Musk’s political backlash, steep tariffs, and delivery woes as key concerns.
Tesla Inc. shares continued their downward spiral after Wedbush Securities analyst Dan Ives—one of Wall Street’s most vocal Tesla bulls—drastically cut his price target for the EV giant. Ives slashed his projection from $550 to $315, citing a mix of political missteps by CEO Elon Musk, significant first-quarter delivery declines, and mounting pressure from tariffs recently reimposed by the Trump administration.
Tesla stock ($TSLA) tumbled more than 10% on Monday following the downgrade and has now dropped over 40% since the start of 2025.
Key Drivers Behind the Tesla Downgrade
- Sharp Drop in Deliveries: Tesla’s Q1 deliveries plummeted, signaling potential demand softness amid growing consumer concern.
- Political Controversy: Musk’s alignment with Trump’s cost-cutting policies has sparked backlash, triggering protests at Tesla showrooms nationwide.
- Tariff Pressure: Newly imposed U.S. tariffs are expected to impact Tesla’s competitiveness in China, its second-largest market.
“This situation is not sustainable and the Tesla brand is suffering daily as a political symbol,” Ives noted in a client report, warning that the company is at a “pivotal moment of truth.”
Ives estimates Tesla may have lost at least 10% of its global future customer base due to self-inflicted brand damage—potentially a conservative figure.
The influential analyst urged Musk to “step up, read the room and be a leader,” emphasizing that the company’s future hinges on its ability to restore brand trust and navigate geopolitical headwinds.
Apple Also Hit by Tariff Fallout as Ives Cuts Price Target
While Tesla grabbed headlines, Apple Inc. ($AAPL) wasn’t spared. Ives reduced his price target for Apple by 20%, from $325 to $250, pointing to the damaging effects of tariffs on the company’s heavily China-dependent supply chain.
Why Apple Is Vulnerable
- Production Dependence: 90% of iPhones are manufactured in China, making Apple highly exposed to the new 54% China and 32% Taiwan tariffs.
- Long-Term Impact: Unlike temporary COVID-related disruptions, these tariffs could have lasting implications on Apple’s cost structure and global demand.
“This isn’t a short-term issue. The margin impact during this tariff war could be mind-boggling,” Ives warned.
Despite remaining bullish on Apple long term, Ives added that moving even 10% of iPhone production to the U.S. could take three years and cost roughly $30 billion—an unrealistic short-term solution.
Apple shares dropped 4% in Monday premarket trading and are now down 25% year-to-date.
Market Summary
| Company | Analyst Price Target (Previous → New) | Premarket Stock Drop | YTD Performance |
|---|---|---|---|
| Tesla ($TSLA) | $550 → $315 (-43%) | -10.42% | -40% |
| Apple ($AAPL) | $325 → $250 (-20%) | -7.29% | -25% |
The twin downgrades from Dan Ives underscore rising investor concern over the impact of politics and tariffs on major tech and EV players. Tesla now faces both brand risk and global market challenges, while Apple’s global supply chain vulnerability places its profit margins in jeopardy. For both companies, the road ahead appears increasingly uncertain.
