Wedbush Securities analyst Dan Ives has lowered his Tesla Inc. TSLA price target to $315 from $550 while maintaining an “outperform” rating, citing growing concerns about the electric vehicle maker’s brand perception and softening demand.
What Happened: “Our long-standing bull view of Tesla remains, but there is no denying this is a pivotal moment of truth for Musk to turn things around…or darker days are ahead,” Ives stated in a recent note shared by Tesla investor Sawyer Merritt on X.
The reduced outlook comes as Tesla faces multiple challenges. The company reported a 13% decrease in first-quarter deliveries, marking its lowest performance in nearly three years, despite introducing a refreshed Model Y in China in February.
Gene Munster of Deepwater Asset Management linked Tesla’s struggles to recent brand damage and predicted 2025 deliveries could drop 9% from the 1.79 million vehicles delivered last year. Deutsche Bank analysts similarly forecast a 5% sales decline.
The analyst also cut his Apple Inc. AAPL price target by 23% to $250 from $325, with a bear case of $160 and a bull case of $325 that assumes tariff removal or exemption.
“The tariff economic Armageddon unleashed by Trump is a complete disaster for Apple given its massive China production exposure,” Ives said, according to Investor’s Business Daily. “In our view, no U.S. tech company is more negatively impacted by these tariffs than Apple with 90% of iPhones produced and assembled in China.”
Why It Matters: These challenges coincide with broader market turmoil. Tesla’s stock plunged 10.42% on Friday following President Donald Trump‘s announcement of new tariffs, including a 10% charge on all imported goods and 25% on foreign automobiles. The selloff wiped approximately $11 billion from CEO Elon Musk‘s net worth.
Ives, historically one of Tesla’s strongest supporters, emphasized that Tesla’s brand is “suffering by the day as a political symbol” – likely referencing Musk’s controversial political involvement that has sparked consumer backlash.
While acknowledging the difficult road ahead, Ives expressed confidence in Musk’s ability to navigate the crisis: “Musk has been with his back against the wall many times and every time Tesla came out of it and was stronger on the other side…this may be one of his biggest challenges yet to turn around.”
Tesla faces additional headwinds from intensifying competition, particularly from Chinese manufacturers like BYD Co. Ltd. BYDDF, and declining market share in Europe.
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