Wedbush Securities analyst Dan Ives has reduced Tesla's stock price target significantly from $550 to $315, citing a brand crisis instigated by CEO Elon Musk alongside the political climate under Trump. This situation has led to a loss of at least 10% of Tesla's potential customer base globally, with estimates for Europe being even higher. The analyst expressed concern over Tesla becoming a political symbol, which could further complicate its market position, especially as tariffs potentially hinder growth in China and push consumers toward domestic competitors.
Tesla has essentially become a political symbol globally....and 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.
We now estimate Tesla has lost/destroyed at least 10 percent of its future customer base globally based on self created brand issues and this could be a conservative estimate.
The company has unfortunately become a political symbol because of Musk, highlighting the global anti-Trump and Musk protests.
Tesla's continued performance in China will remain the 'bigger worry,' as tariff backlash could also drive consumers even further toward domestic options.
Collection
[
|
...
]