Tesla actions fall in the midst of automotive prices and the “brand crisis”

Tesla’s actions took a blow on Monday after a leader analyst reduced her price goal by more than 40%, citing a “perfect storm” created by President Trump’s car rates and the deterioration of Elon Musk’s reputation.

Wedbush Securities analyst, Dan Ives, reduced his price target from $ 550 to $ 315 this weekend while retaining his “outperformance” note of the action.

The shares have dropped up to $ 216 on Monday morning, a drop of more than 9%. They closed $ 233.29 on Monday afternoon, down 2.5% for the day.

The American trade secretary, Howard Lunick, urged Fox News viewers to buy Tesla shares last month, declaring that the actions “would no longer be as cheap” when they closed at $ 235.86 on March 19. The next day, Musk encouraged Tesla employees to “hang on” to their actions during a meeting of all hands.

The shares have plunged almost 40% since the start of the year and fell 55% compared to a record in December. The stock climbed Trump’s victory over Kamala Harris in the November presidential election, because many believe that the Musk association with the elected president would strengthen the value of Tesla.

However, Musk’s controversial role in Trump administration has created a “brand crisis” for his electric vehicle company, Ives said. Some owners of Tesla have once attracted the environmental benefits of the vehicle since denounced Musk, who heads an advisory team of the White House which he calls the Ministry of Effectiveness of the Government.

Opponents of Trump and Musk organized anti-TESLA demonstrations and even vandalized or destroyed Tesla vehicles and charging stations.

“The more musk attached to the Trump administration and Doge, the brand’s damage goes from content to permanent,” said Ives in an interview. “Tesla has become a political symbol in the world and it is not a good thing.”

Tesla, which is based in Austin, Texas, but has a significant manufacturing plant in Fremont, California, has lost around 10% of its future clientele worldwide, predicted Ives, due to brand problems “self-inflicted by musc”. The company’s reputation is under fire in China, where consumers react to Trump’s pricing policies, Ives said.

A Tesla representative could not be immediately joined to comment.

Trump’s car rates will upset the supply chains and increase the price of vehicles and parts, which could still affect Tesla sales. Although Tesla is less exposed to prices than other American car manufacturers such as Ford and Stelllantis, said Ives, the company is further source on several parts and batteries from outside the country.

Tesla delivered 336,681 vehicles in the first quarter, announced the company this month, well below the original industry estimates of 400,000.

Ives remains optimistic about the company’s plans for autonomous driving technology and a Robotaxi service, he said.

Technological actions have also taken a big hit since Trump unveiled new prices, highlighting the discomfort among investors. Last week, analysts said the price of Apple’s iPhone could cost $ 2,500 more depending on the model. Since April 2, when Trump has announced new prices, Apple’s action has plunged around 19%.

Prices could also make the construction of data centers more expensive and affect companies such as Meta that earn money from advertisers in China.

The equity prices increased from top to bottom in the middle of rumors that Trump could suspend the prices for 90 days, but the White House refuted the complaint on social networks.

Apple’s shares ended on Monday ended at $ 181.46, down 3.6%. Other technological companies, including the mother company of Google, Alphabet, Nvidia and Amazon have seen their share increase slightly. Meta, who published her latest artificial intelligence model during the weekend, closed 2.3% at $ 516.25.