Tesla’s Brand Takes a Hit as Top Analyst Cuts Price Target

Tesla just took a major blow from one of its biggest supporters. Dan Ives, a well-known Tesla bull and analyst at Wedbush, has slashed his price target on the stock—dropping it from $550 to $315. This move follows a rough start to the week for Tesla, as shares fell nearly 6% on Monday, continuing a downward trend that’s seen the stock drop about 44% in 2025 alone.

Why the Drop?

According to Ives and his team, Tesla is facing a “double whammy”:

1. New U.S. Tariffs – The Trump administration’s recent tariffs are expected to hurt Tesla’s production costs and profit margins.

2. Brand Backlash – CEO Elon Musk’s alignment with political figures, including Donald Trump, has created what Wedbush is calling a “brand crisis tornado.”

That brand crisis is more than just bad PR. The analysts believe it could impact actual sales—both in North America and overseas. They estimate Tesla may have lost at least 10% of its future customer base due to Musk’s political ties.

Tesla Becoming a Political Symbol

Wedbush says Tesla is no longer just a tech brand or EV leader—it’s now seen as a political symbol, and that’s not helping the company win over new customers. The situation could be especially damaging in key markets like China, where consumers may now lean toward local EV options like BYD.

A Pivotal Moment for Tesla

While the analysts still believe in Tesla long-term, they’ve made it clear that this is a turning point. Their message to Musk? “Step up, read the room, and be a leader in this time of uncertainty.”

The stock dip and revised outlook are a warning sign: if Tesla doesn’t rebuild trust and refocus its message, the road ahead could get even bumpier.