Wedbush Securities analyst Dan Ives slashed his price targets for Apple and Tesla over the weekend as President Trump’s tariffs threaten to disrupt both businesses.
“The tariff economic Armageddon unleashed by Trump is a complete disaster for Apple given its massive China production exposure,” Ives said in a warning note over the weekend. “In our view, no U.S. tech company is more negatively impacted by these tariffs than Apple with 90% of iPhones produced and assembled in China.”
Wedbush cut its price target for Apple stock by $75, down to $250 per share. Apple’s shares are down this afternoon by 4.3% and trading at $180.
Ives also cut his price target for Tesla to $315 from $550, which is still well above Tesla’s current share price of $233.94 as of 2:10 pm ET.
Ives said the affect of tariffs isn’t the only reason for the price cut. He also cited CEO Elon Musk’s politics, which has created a brand crisis for the automaker. Musk’s association with Trump and his tariffs policies are affecting sales in the U.S. and Europe and also threaten Tesla’s popularity in China, “further driv[ing] Chinese consumers to buy domestic such as BYD,” said Ives.
“Tesla has essentially become a political symbol globally,” he wrote. “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% compared to Friday’s closing price, but have rebounded somewhat as of Monday afternoon.
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