Wedbush Securities analyst Dan Ives lowered his price targets for both Apple and Tesla over the weekend, citing the looming disruption caused by President Trump’s tariffs. According to Ives, Apple, in particular, is severely affected due to its substantial production in China.
Apple Hit Hardest by Tariffs
In a weekend note, Ives emphasized that no U.S. tech company stands to be more negatively impacted by Trump’s tariff policies than Apple, which relies heavily on Chinese manufacturing. “The tariff economic Armageddon unleashed by Trump is a complete disaster for Apple given its massive China production exposure,” he wrote. With 90% of iPhones produced and assembled in China, Apple is particularly vulnerable.
As a result, Wedbush cut its price target for Apple stock by $75, dropping it to $250 per share. Apple’s stock was down by 4.3% as of Monday afternoon, trading at $180.
Tesla Also Affected, But Politics Play a Role
Ives also reduced his price target for Tesla, lowering it from $550 to $315. Although still above the current share price of $233.94, Ives stated that the tariff issue is not the only factor behind the price cut. He pointed to CEO Elon Musk’s political involvement, which has sparked a brand crisis for Tesla.
Musk’s ties to Trump and his tariff policies are negatively impacting sales in both the U.S. and Europe, and also threaten Tesla’s standing in China, where domestic companies like BYD are gaining traction. “Tesla has essentially become a political symbol globally,” said Ives.
He urged Musk to take charge of the situation, saying, “It is time for Musk to step up, read the room, and be a leader in this time of uncertainty.”
Tesla shares were down nearly 10% from Friday’s closing price, but they showed signs of recovery by Monday afternoon.
What The Author Thinks
Elon Musk’s political alignment may indeed be adding unnecessary complications to Tesla’s business, especially in an increasingly polarized global market. While it’s clear that the tariffs are hurting both Tesla and Apple, Musk’s involvement in politics is undoubtedly exacerbating the situation. It’s time for him to focus on his company’s future and make choices that will steer it away from these distractions, especially in key international markets.
