Wedbush Securities analyst Dan Ives has significantly reduced his 12-month price target for Tesla from $550 to $315, citing both political and brand challenges. Tesla has become a global political symbol, which Ives believes is detrimental to its future. Musk’s involvement in politics and focus on DOGE have contributed to a perceived brand crisis. Additionally, the impact of President Trump’s tariffs on Chinese goods is affecting Tesla’s trade relationship with China. Although Tesla’s U.S.-based manufacturing minimizes tariff impacts, political backlash in China may shift consumer preferences towards domestic brands like BYD, Nio, and Xpeng. Early investor Ross Gerber noted the erosion of Tesla’s high-end EV market and criticized the brand’s current trajectory. Tesla’s stock has dropped nearly 37% since the start of the year.
— new from Business Insider
