Why the largest Tesla bull has simply reduced the price objective of the electric vehicle manufacturer

Tesla’s shares (TSLA) fell on Monday while the sale launched by the new Trump administration prices continued, and Wedbush analysts led by Bull Dan Ives reduced their share of action to $ 315, against $ 550 before.

Analysts have called the current “double blow” price uncertainty for Tesla, as this will have a negative impact on costs and beneficiary margins of the manufacturer of electric vehicles, and will also lead to a more negative reaction to the CEO Elon Musk and the brand, resulting in a reduction in sales.

“ Very bad thing ” that Tesla has become a political symbol

“Tesla has essentially become a political symbol on a global scale … And it is a very bad thing for the future of this faithful disturbing technological and the tornado of the brand crisis which has now become a Trenado F5,” wrote analysts.

They estimated that Tesla lost “at least 10% of its future customers” on “self-created brand problems”. The impact will also be felt in China, where analysts said that the impact of the Musk association with the Trump administration could encourage Chinese consumers to buy an increasing number of electric vehicles manufactured by national companies like Byd.

Analysts called for Musk to “intensify, read the room and be a leader in this period of uncertainty”. They said that their optimistic vision of Tesla remains in the long term, but “it is undeniable that it is a pivotal moment of truth so that Musk will give things up … or darker days are ahead.”

Tesla’s shares have dropped by almost 6% in late negotiation on Monday and dropped approximately 44% since the start of the year.

To find out more about the wider market reaction to the latest prices, consult Investor Blog on live markets.