Tesla bull Dan Ives has drastically cut his price target for Tesla, calling it a 'political symbol'

[BumRushDaShow]

Source: Aol/Business Insider

Updated Sun, April 6, 2025 at 5:59 PM EDT


Wall Street analyst Dan Ives, long bullish on Tesla, has soured on the stock. In a note published Sunday, Ives' firm, Wedbush Securities, slashed its 12-month price target for Tesla stock from $550 to $315, a 43% reduction — though still above its current price of $239.

"Tesla has essentially become a political symbol globally," the firm wrote. "That is a very bad thing for the future of this disruptive tech stalwart and the brand crisis tornado that has now turned into an F5 tornado." Ives says Musk's foray into politics hasn't been a great look for the carmaker. The firm estimates that Tesla has already lost 10% of its future global customer base — a conservative estimate — based on "self-created brand issues."

Brand issues aside, the firm said the biggest reason for the price target cut is the impact President Donald Trump's new tariffs will have on its trade relationship with China. Trump has collectively levied a 54% tariff on Chinese goods coming into the United States since taking office in January. China retaliated on Friday with its own 34% tariff on US goods.

While Trump's tariffs may not significantly impact Tesla due to its large US manufacturing footprint, the company still relies on car parts from China, like batteries. The political backlash to Trump and Musk in China, however, will likely affect Tesla's sales in the key EV market. Wedbush wrote that Chinese consumers are more likely to opt for domestic cars made by BYD, Nio, and Xpeng.

Read more: https://www.aol.com/tesla-bull-dan-ives-drastically-210828617.html

[Deminpenn]

1. Has Ives figured out that many of Tesla's customers

are environmentalists who I expect are usually liberal or progressive? Musk has succeeded in alienating his own customer base who are now moving on other EV makers, of which there are an increasing number.

[BumRushDaShow]

2. I expect he (and others) already knew that

and waved it off as being a car of choice for "the wealthy liberal elite". This is probably why they used the term "political" to basically say that Muskrat has now pissed off his customer base to his own detriment (and that "base" wasn't GOP voters). And certainly, it doesn't seem like the MAGat base is ready to go "all in" to save Tesla either, despite the "advertising" of it by their dear leader.

It's possible if Tesla designs something that looks like a Ford F-150 or Dodge Ram 1500, then maybe the MAGats will "buy in". Otherwise his vehicles seem geared towards urban ( a/k/a "blue city" ) driving.

[Cheezoholic]

3. I think he'll be lucky to be at 200 a share by Memorial Day. Just my opinion. n/t

[PortTack]

4. This guy doesn't seem to realize ppl that would buy a tesla have better options one, and two the brand is

Now toxic. And, to say nothing of the fact they have terrible customer service and they have very little resale value.

[RazorbackExpat]

5. I don't foresee buying another car in what's left of my life

But if I do, and it's a hybrid, it will probably be a Prius