In a recent development, Wedbush Securities analyst Dan Ives significantly lowered the target prices for Tesla (TSLA) and Apple (AAPL, Financial). Ives cut Tesla's target price by 43% to $315, citing tariffs and controversial cost-cutting measures by CEO Elon Musk. Tesla's first-quarter deliveries dropped sharply, and protests erupted at its showrooms. The stock fell about 15% last week, down over 40% this year.
Ives noted Tesla's brand crisis, stating it has become a political symbol globally, which is detrimental to its future. He urged Musk to lead decisively, as Tesla risks losing at least 10% of its future global customer base due to self-inflicted brand issues, especially in China due to tariffs.
Meanwhile, Ives reduced Apple's target price by 20% to $250, attributing it to the impact of tariffs. With 90% of iPhones produced in China, tariffs could significantly increase Apple's costs and affect demand. Despite challenges, Ives remains optimistic about Apple's long-term prospects but noted shifting production to the U.S. is impractical.
Last week, Apple's stock fell about 14%, down approximately 25% this year.
