Tesla Stock Falls Sharply as Analyst Slashes Price Target, Citing Tariffs and Musk’s Political Role

? Tesla Stock Falls Sharply as Analyst Slashes Price Target, Citing Tariffs and Musk’s Political Role

Tesla shares dropped over 5% after longtime bull and Wedbush analyst Dan Ives slashed his price target by nearly 43%, warning of a full-blown crisis at the EV giant.

Dan Ives, one of Tesla's most prominent Wall Street supporters, has dramatically lowered his price target on Tesla stock from $550 to $315, citing mounting challenges tied to U.S. auto tariffs and CEO Elon Musk's growing political influence.

Despite maintaining an Outperform rating, Ives expressed deep concern over Tesla’s direction amid what he calls an “economic tariff Armageddon” triggered by the Trump administration. He warned that sourcing critical components like battery cells from China could soon pose a significant threat — even though Tesla is less exposed than rivals like General Motors and Ford.

Tesla’s stock initially fell 4% at the open and dropped more than 5% in midmorning trading, even after a report — later refuted — that the Trump administration may pause tariff plans for 90 days.

More troubling, Ives highlighted the brand damage Tesla is suffering from Musk's controversial political involvement both in the U.S. and abroad.

"Tesla has essentially become a political symbol globally... and that is a very bad thing for the future of this disruptive tech stalwart,” Ives wrote. “The brand crisis tornado has now turned into an F5 tornado.”

Ives also pointed to global protests at Tesla showrooms, which he says have created a “dark black cloud” over the stock. Tesla shares are now down 43% year-to-date.

China, a key market for Tesla’s long-term growth, is also under threat. Ives believes Trump’s tariff strategy and Musk’s closeness to the former president could drive Chinese consumers toward domestic EV rivals like BYD, Nio, and XPeng.

While Model Y sales rebounded in March, thanks to the availability of a refreshed version in showrooms, Tesla’s China-made EV sales still fell by 11.5% in the month. Globally, Tesla reported Q1 deliveries of 336,681, missing the 390,342 estimate and marking its worst quarter since Q2 2022.

“This is a full-blown crisis Tesla is navigating now (along with these tariffs), and it is time for Musk to step up, read the room, and be a leader in this time of uncertainty,” Ives concluded.