The longtime Tesla Bull cut its stock price target by 43%. It claims that President Trump's trade war and his controversial relationship with the president have created a “perfect storm” for the company.
Wedbush analyst Dan Ives said he expects Tesla's stock to reach $315 from a $550 forecast over the next 12 months. Tesla shares fell about 6% at about $239.43 per share on Monday, along with widespread market volatility related to Trump's tariffs.
“We have been one of Musk and Tesla's biggest supporters in the last decade. However, this situation is not sustainable and the Tesla brand is struggling by that day as a political symbol,” Ives said in a note to his client on Sunday.
Amid signs of trouble Tesla faced, Musk appeared to be broken with the Trump administration over the weekend, but criticised trade adviser Peter Navarro.
“At the end of the day, I hope that both Europe and the US will ideally, in my view, will move ideally into a zero tariff situation and will effectively create a free trade zone between Europe and North America.”
Navarro returned to the mask when he appeared on Fox News on Sunday. The Tesla boss claimed that he was “simply protecting his own interests.”
Tesla dealers have faced a wave of vandalism attacks in recent months as Musk has become the central stage for Trump-backed government efficiency (DOGE).
Meanwhile, Tesla and other automakers are set to experience a surge in manufacturing costs as Trump tariffs of 25% in all imported cars and auto parts hammer global supply chains.
Tesla is thought to be less revealing than other American brands. Because we manufacture all US-selling cars in the US, so we are not unharmed.
Other car manufacturers were also destroyed in early trading. Among Detroit's Big 3 carmakers, Ford and GM each sunk about 3%, while Stelanis fell about 7%.
According to an analysis by Detroit-based company Telemetry, U.S. and Canada's car sales can sink with just 1.8 million vehicles this year alone, as a result of tariffs. If tariffs remain for the next decade, sales could be about 7 million lower than they would be in a scenario without a trade war and strong economic growth.
Unemployment and vehicle prices are likely to rise as a result of tariffs as a result of Telemetry's Insights Sam Abuelsamid I told Reuters.
“In our opinion, the greater concern in our opinion is Tesla's success in China, as this important region is the linchpin for Tesla's future success,” Ives added. “The backlash from the Trump tariff policy of China and the Musk Association will be modest, which will encourage Chinese consumers to buy domestic products such as BYD, NIO and XPENG.”
Tesla's delivery, which is considered a close proxy for sales, fell 13% in the first quarter. Elsewhere, the number of Tesla trades in other new or used cars at dealers reached “the best share ever” in March, according to an Edmunds report.
As reported by the Post, Trump's trade war is also expected to significantly improve Chinese electric car maker BYD. This has already surpassed Tesla with annual revenue of over $100 billion and has invaded major markets such as Europe and South America.
