April 7, 2025 – Long – time Tesla bull Dan Ives has made a significant cut to his price target for the electric vehicle maker’s stock. In a note to clients on Sunday, Ives, from Wedbush Securities, lowered Tesla’s target price from 550to315, while keeping his “Outperform” rating intact.
Ives explained that the 43% reduction was primarily due to a “full – fledged brand crisis” triggered by Elon Musk, coupled with the impact of the Trump administration’s global tariff policies. These factors combined to create a “perfect storm” for Tesla. “Tesla has become a global political symbol, which is highly detrimental to the future of this disruptive tech giant and the escalation of its brand crisis,” he emphasized. Ives estimated that Tesla has lost at least 10% of its potential global customer base due to self – inflicted brand issues, with the figure potentially reaching 20% or more in Europe, all of which can be attributed to Musk.
The report also noted that Tesla has “unfortunately” become a political symbol because of Musk, leading to a surge in protests against Tesla dealerships worldwide. Tesla cars have been vandalized, and the brand crisis has intensified, casting a large shadow over the company’s stock. Despite having a promising future in areas such as autonomous driving, low – cost models, and robotics, Tesla is currently facing the dual challenges of a brand crisis and tariff issues. Musk needs to step up during this uncertain period, understand the situation, and take a leadership role.
From the perspective of stock demand and brand damage, the problems Tesla is facing have worsened over the past few months. The first – quarter delivery figures were disappointing, and if Musk doesn’t reduce his focus on the Department of Government Efficiency (DOGE) or take a step back in the next month, Tesla could face a tough year. Ives mentioned that they are trying to adjust their new forecasts for 2025 and 2026, but tariffs, retaliatory measures, and uncertainties in the Chinese market could make these projections a moving target.
Despite this, Ives remains bullish on Tesla in the long term. However, he acknowledges that this is a critical moment for Musk to turn things around; otherwise, the future will be even more challenging. Over the past decade, he has been a staunch supporter of Musk and Tesla, but the current situation is unsustainable, and Tesla’s brand image as a political symbol is increasingly being damaged. Musk has faced numerous difficulties in the past, and Tesla has always managed to overcome them and emerge stronger. But this time, it could be one of his biggest challenges yet.
