One of Tesla’s most prominent Wall Street supporters, Dan Ives of Wedbush Securities, has significantly cut his 12-month price target for the company by 43%. The revised TSLA price target of $315, down from $550, reflects growing concerns over CEO Elon Musk’s political entanglements, lowering vehicle deliveries, and escalating international trade tensions.
Ives, who has long held an “Outperform” rating on Tesla, did not mince words in a note to investors, calling the current situation a “full-blown crisis” for the company. “Tesla has essentially become a political symbol globally,” he 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.” (via Business Insider)
Tesla’s stock has dropped more than 40% year-to-date, weighed down by a combination of disappointing Q1 delivery numbers and the fallout from U.S. President Donald Trump’s aggressive new tariff policy. The administration recently imposed sweeping tariffs on Chinese goods, prompting a retaliatory response from China, which Ives warned could severely damage Tesla’s position in a critical EV market.
While Tesla manufactures many of its vehicles in the U.S., the company still relies on imported components—particularly batteries and parts from China—which are now subject to steeper costs. More troubling, Ives noted, is the political backlash against Musk outside of the United States, which may be eroding consumer trust in the Tesla brand.
“We now estimate Tesla has lost/destroyed at least 10% of its future customer base globally based on self created brand issues and this could be a conservative estimate. In Europe, this number could be 20% or higher….all self-inflicted by Musk.”
Despite the grim outlook, Ives maintains that Tesla’s long-term vision—anchored by autonomous driving, and in particular the launch of Tesla’s robotaxi service in Austin this June, robotics, and expansion into new markets—remains intact. However, he emphasized that the current turbulence represents one of Musk’s biggest tests as CEO.
“It is time for Musk to step up, read the room, and be a leader in this time of uncertainty.” Otherwise, as Ives warned, “darker days are ahead.”
Tesla (TSLA) is currently trading around $230 per share, down nearly 40% year-to-date.
