Longtime Tesla bull slashes price target by 43% as Trump tariffs, brand crisis create perfect storm
A longtime Tesla bull has slashed his price target for the stock by 43% — arguing that President Trump’s trade war and Elon Musk’s controversial ties with the president have created a “perfect storm” for the company.Wedbush analyst Dan Ives said he expects Tesla shares to hit $315 over the next 12 months, down from his earlier projection of $550.Tesla shares opened about 6% lower at roughly $239.43 per share on Monday alongside broad market volatility related to Trump’s tariffs.“We have been one of the biggest supporters of Musk and Tesla over the last decade….but this situation is not sustainable and the brand of Tesla is suffering by the day as a political symbol,” Ives said in a note to clients on Sunday.Tesla dealerships have faced a wave of vandalism attacks in recent months as Musk took center stage in the Trump-backed Department of Government Efficiency (DOGE).Meanwhile, Tesla and other automakers have set to experience a spike in manufacturing costs as Trump tariffs of 25% on all imported cars and car parts hammer global supply chains.
Tesla is considered less exposed than other American brands because it manufactures all of its US-sold cars within the states – but won’t be unscathed.Other automakers also slumped in early trading.Among Detroit’s Big 3 automakers, Ford and GM each sank about 3% while Stellanis plunged about 7%.Car sales in the US and Canada could sink by 1.8 million vehicles this year alone as a result of the tariffs, according to an analysis by Detroit-based firm Telemetry.
If tariffs remain in place for the next decade, sales could be about 7 million units lower than they would have been in a scenario without a trade war and strong economic growth.Job losses and higher vehicle prices are also likely as a result of the tariffs, Telemetry’s vice president of insights Sam Abuelsamid told Reuters.“The bigger worry in our opinion is Tesla’s success in China as this key region is the linchpin to the future success ...