- Wedbush’s Daniel Ives cuts Tesla price target by 43%, citing political and brand risks.
- CEO Elon Musk’s actions and U.S. trade policy under President Trump blamed for reputational damage.
- Tesla faces potential market share loss in China as tariffs climb and local EV rivals gain traction.
- Stock falls 50% from December peak as investor confidence wanes amid global uncertainty.
New York, April 5, 2025 – One of Wall Street’s most prominent Tesla Inc. bulls has dramatically slashed his outlook on the electric vehicle maker, citing rising geopolitical risk and brand deterioration. Daniel Ives, a long-time Tesla supporter and analyst at Wedbush Securities, cut his 12-month price target for Tesla shares from $550 to $315 — a 43% drop — citing the company’s growing brand crisis and the impact of U.S. trade policy under President Donald Trump.
“Tesla has essentially become a political symbol globally,” Ives wrote in a note to clients. “It is time for Musk to step up, read the room, and be a leader in this time of uncertainty.”
The reassessment comes amid escalating tensions between the U.S. and China, Tesla’s second-largest market. With China preparing to impose a 34% tariff on U.S. imports — matching reciprocal tariffs from the Trump administration — analysts warn of a significant demand shift toward domestic electric vehicle brands such as BYD, Nio, and Xpeng.
Tesla, which generated more than 20% of its revenue from China in the past year, is at risk of losing a major share of its customer base. “We now estimate Tesla has lost or destroyed at least 10% of its future customer base globally due to self-inflicted brand issues, and that may be a conservative estimate,” Ives noted.
The political overhang has weighed heavily on the company’s stock, which has already declined 50% from its all-time high reached on December 17. The recent 15% drop in just two trading sessions followed President Trump’s announcement of broad tariffs on all imports, with some nations facing even higher levies.
Tesla’s situation underscores the broader risks for multinational companies operating in politically sensitive sectors, especially when their brand becomes entangled with contentious leadership or national policy moves.
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