Tesla Bull Dan Ives considerably reduces the price objective for Tesla

Wall Street analyst Dan Ives, Long Haussier on Tesla, embarked on the stock.

In a note published on Sunday, the company of Ives, Wedbush Securities, reduced its price target of 12 months for Tesla shares from $ 550 to $ 315, a reduction of 43%.

“Tesla has essentially become a political symbol worldwide,” wrote the company. “It is a very bad thing for the future of this disturbing technological pillar and the tornado of the brand crisis which has now become a Tornado F5.”

Ives says that Musk’s foray into politics was not an excellent look for the automaker. The company estimates that Tesla has already lost 10% of its future global clientele – a conservative estimate – based on “self -created brand problems”.

Aside from the brand problems, the firm said that the main reason for lowering the price objective is the impact that President Donald Trump’s new prices would have on his business relations with China.

Trump has collectively received a 54% rate on Chinese products to come to the United States since its entry into office in January. China retaliated on Friday with its own 34% price on American products.

While Trump’s prices may not have a significant impact on Tesla because of its large American manufacturing imprint, the company is still based on automobile parts from China, such as batteries.

Trump’s political reaction and Musk in China, however, will probably affect Tesla sales on the key to the key. Wedbush wrote that Chinese consumers are more likely to opt for domestic cars made by Byd, Nio and Xpeng.

The company also underlined already obvious examples of loss, including Tesla’s delivery numbers for the first quarter of 2025, which arrived at almost 336,700, a drop of 13% from one year to the next. “It could be a sudden year to come if Musk does not leave the scene on the left or does not go back to Doge in the coming month,” said Wedbush.

Even the start of Tesla’s investor, Ross Gerber, bristled Tesla’s decline. “The high-end EV activity has completely eroded. Cybertruck does not sell. The brand is broken and may not be repairable,” he wrote in an article on X last week.

The company’s share price has dropped almost 37% since the start of the year and more than 50% compared to a record on December 17, 2024.

Tesla did not immediately respond to a request for comments from Business Insider.