Dan Ives, a top analyst at Wedbush Securities and longtime bull on Tesla and Apple, has sharply reduced his price targets for both companies, citing recent political and economic headwinds.
Ives cut Tesla’s price target by a staggering 43%, from $550 to $315, after a string of negative developments including steep tariffs and CEO Elon Musk’s controversial alignment with the Trump administration’s cost-cutting agenda. Tesla shares tumbled more than 7% in premarket trading Monday, extending a selloff that’s left the stock down over 40% year-to-date.
“This situation is not sustainable and the brand of Tesla is suffering by the day as a political symbol,” Ives said in a client note. He warned the company may have lost at least 10% of its future customer base globally due to self-inflicted brand damage, calling this estimate “conservative.”
Tesla’s Q1 deliveries plunged, and mass protests erupted over the weekend at its showrooms, further pressuring the stock. Ives urged Musk to “step up, read the room, and be a leader,” saying the company is facing a make-or-break moment.
Meanwhile, Ives also downgraded Apple’s price target by 20%, from $325 to $250, citing the impact of new Trump-era tariffs. Apple, which manufactures 90% of iPhones in China, faces steep costs due to 54% tariffs on Chinese imports and 32% on goods from Taiwan.
“Unlike COVID disruptions, this isn’t a temporary issue,” Ives wrote. He warned that relocating even a fraction of Apple’s supply chain to the U.S. would take years and billions of dollars, leading to significant short-term margin pressure.
Apple’s shares dropped 4% in premarket trading Monday and are down about 25% for the year.
