Tesla shares dropped by nearly 10% on Monday after a leading analyst cut his price target for the stock by more than 40%. Dan Ives, Wedbush Securities’ top Tesla analyst, reduced his price target from $550 to $315 due to concerns about President Trump’s auto tariffs and Elon Musk’s declining reputation.
The analysts warned that Trump’s tariffs will significantly hurt Silicon Valley tech companies like Apple and impact the industry as a whole. The company’s shares have plunged nearly 40% since the beginning of the year, mainly due to the association between Musk and the president-elect.
Ives stated that Tesla has become a “political symbol around the world” and that Musk’s ties to the Trump administration have caused irreparable damage to the brand. The analyst predicts that Tesla will lose about 10% of its global customer base due to these issues.
The US Commerce Secretary, Howard Lutnick, had previously urged Fox News viewers to buy Tesla shares, but his statement seems to have backfired as Musk encouraged employees to “hang on” to their stocks at an all-hands meeting.
In contrast, other tech companies like Google and Nvidia saw slight gains in their share prices, while Meta’s stock rose 2.3% after releasing its latest artificial intelligence model over the weekend.
Source: https://www.latimes.com/business/story/2025-04-07/tesla-stock-drop-elon-musk-trump-ev-market-doge