Analysts are slashing their price targets for Tesla, citing concerns over CEO Elon Musk’s polarizing role in the Trump administration. Noted market analyst Dan Ives of Wedbush Securities reduced his 12-month target by 43% to $315, sending shares down over 7%. The move follows a drop in quarterly sales and growing recession fears tied to the Trump administration’s tariff plans.
Despite this, Ives still maintains an “overweight” recommendation for Tesla, citing long-term strengths. However, he warns that Musk must step back from his role before it’s too late to repair damage. Analysts at Deutsche Bank, RBC Capital Markets, Stifel Nicolas, and Piper Sandler also cut their price targets, but still have a buy recommendation.
The backlash against Musk has hit Tesla hard, with protests outside showrooms and falling sales globally. China, the world’s largest market for electric vehicles, is particularly affected, with Ives estimating a 10% loss of future global customer base. Investors are taking notice, with some advising to sell their shares due to concerns over Tesla’s consumer reaction.
Tesla’s stock has nearly doubled in value since Election Day but has since lost those gains as Musk’s role became more apparent. The recent slump means Tesla shares are below the pre-election peak. Despite this, analysts remain optimistic about Tesla’s long-term prospects.
Source: https://edition.cnn.com/2025/04/07/business/tesla-stock-bulls-bears/index.html