- Wedbush analyst Dan Ives cut his Tesla (TSLA) price target by 43% from $550 to $315, citing a brand crisis fueled by Elon Musk’s leadership and U.S. President Trump’s trade policies, which have turned Tesla into a “political symbol globally.”
- Tesla’s stock dropped 15% in two days after Trump’s 10% tariff announcement on all U.S. imports, with a 50% decline from its December 17 peak, as China’s retaliatory 34% tariff, effective April 10, threatens its market share in a region generating over a fifth of its revenue.
- Ives warns that Tesla has lost at least 10% of its future global customer base due to self-inflicted brand damage, with Chinese consumers likely shifting to domestic rivals like BYD, Nio, and Xpeng amid the escalating tariff war.
Tesla Inc. (TSLA) finds itself at a perilous crossroads as Wall Street’s once-steadfast optimist, Dan Ives of Wedbush Securities, slashed his price target for the electric vehicle maker from $550 to $315—a 43% cut that reflects deepening concerns over a self-inflicted brand crisis and the fallout from U.S. President Donald Trump’s trade policies. Ives, who has championed Tesla with a ‘Buy’ rating for four years, now warns that the company has morphed into a “political symbol globally,” a shift he attributes to CEO Elon Musk’s polarizing presence and the escalating tariff war with China. With Tesla shares already down 50% from their December 17 record high and a bruising 15% drop in the two days following Trump’s announcement of a baseline 10% tariff on all U.S. imports—plus steeper duties on 60 nations—the stakes for the carmaker have never been higher.
The tariff landscape poses a direct threat to Tesla’s bottom line, particularly in China, where it earned over a fifth of its revenue last year. President Xi Jinping’s retaliatory 34% tariff on U.S. imports, set to take effect April 10, mirrors Trump’s reciprocal levies and could throttle Tesla’s appeal in one of its largest markets. Ives estimates this backlash has already eroded at least 10% of Tesla’s future global customer base, as Chinese consumers pivot to domestic rivals like BYD, Nio, and Xpeng—a figure he deems conservative given the brand’s mounting reputational damage. This isn’t merely a trade issue; it’s a seismic shift in perception, with Ives urging Musk to “step up” and lead amid the uncertainty rather than exacerbate the company’s woes through controversy.
Tesla’s 15% stock plunge post-tariff announcement underscores the market’s swift reassessment of its growth trajectory. Ives’ revised $315 target signals a sobering reality: the interplay of Trump’s trade aggression and Musk’s divisive persona risks alienating a critical mass of buyers, especially in China, where the 34% tariff could price Tesla out of reach for many. The analyst’s critique is clear—Tesla’s wounds are partly self-inflicted, and without decisive leadership, the company may cede ground to nimbler competitors. As the tariff deadline looms, Tesla’s ability to navigate this dual storm of policy and perception will determine whether it can reclaim its footing or slide further from its once-unassailable perch.
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