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Wedbush analyst Dan Ives, one of Tesla’s most prominent longtime bulls, aggressively cut his price target on the stock from $550 to $315, citing intensifying tariff pressures and a worsening global brand crisis.
In a strongly worded note on Sunday, Ives described the situation as a “double whammy” of economic and reputational damage that could reshape Tesla’s trajectory.
“The economic tariff Armageddon unleashed by the Trump Administration is a double whammy for Tesla in our view,” Ives wrote.
While Tesla is less exposed to tariffs than legacy U.S. automakers like GM, Ford, and Stellantis (NYSE:STLA), Ives noted the EV maker still sources a significant share of parts and batteries from China and other foreign markets.
These inputs will now face increased costs, potentially passed on to consumers, leading to demand destruction in the U.S. market.
“The tariffs in their current form will disrupt Tesla, the overall supply chain, and its global footprint which has been a clear advantage over the years vs. rising competitors like BYD (SZ:002594),” Ives said.
More concerning, according to Ives, is Tesla’s deteriorating brand perception, particularly in China. “The backlash from Trump tariff policies in China and Musk’s association will be hard to understate,” he warned.
“Tesla has essentially become a political symbol globally... and that is a very bad thing.”
The analyst now estimates Tesla has lost at least 10% of its future global customer base due to self-inflicted brand issues—a figure he calls “conservative”—and says the damage could exceed 20% in Europe.
Ongoing protests at Tesla dealerships and vandalism of vehicles underscore the growing backlash, he said. Despite Tesla’s long-term potential in autonomous driving, robotics, and low-cost EVs, Ives said the company is navigating a “full blown crisis” exacerbated by recent delivery shortfalls and the broader macro environment.
“The 1Q delivery number was a disaster,” he wrote. “This could be a brutal year ahead if Musk does not exit stage left or take a step back on DOGE in the coming month.”
While reiterating his long-term belief in the company, Ives called the current moment “one of [Musk’s] biggest challenges yet.”
“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.”
Tesla (NASDAQ:TSLA) shares have dropped more than 50% since hitting their all-time high in December.