Dan Ives of Wedbush Securities has significantly cut Tesla's 12-month price target by 43%, detailing the firm's concerns over Elon Musk's political maneuvers and heightened tariffs impacting the company's business. The report indicates that Tesla has potentially lost 10% of its future customers due to branded complications, and the retaliatory tariffs between China and the U.S. may further erode Tesla’s market positioning. Recent delivery figures already show a decline, highlighting an alarming trend for the company in the competitive EV landscape, especially in China.
Tesla's brand has suffered tremendously, becoming a political symbol globally. This distraction combined with tariff issues has severely impacted its market outlook.
The firm estimates that Tesla has already lost 10% of its future customer base due to self-created brand issues, reflecting poor consumer sentiment.
Tesla's delivery numbers decreased by 13% year-over-year in the first quarter of 2025, suggesting a challenging year ahead unless significant changes occur.
With tariffs increasing and consumer loyalty wavering, the long-term viability of Tesla's competitiveness in the Chinese EV market is now in serious jeopardy.
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