Dan Ives of Wedbush Securities has reduced Tesla's stock price target from $550 to $315 while keeping an Outperform rating. He attributes the 43% cut to a "full-blown brand crisis" initiated by actions of CEO Elon Musk and the political climate surrounding Trump. Ives warns that Tesla has potentially lost 10-20% of its global customer base due to these issues, escalating concerns about the company's future as it faces challenges from domestic competitors amid tariff uncertainties, particularly in China.
"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."
"Unfortunately become a political symbol because of Musk, highlighting the global anti-Trump and Musk protests, and vandalism that many have lodged against owners of Tesla's vehicles."
"The continued performance in China will remain the bigger worry, as tariff backlash could also drive consumers even further toward domestic options such as BYD, Nio, or Xpeng Motors."
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