Wedbush Securities analyst and long-standing Tesla (NASDAQ: TSLA) bull Dan Ives has slashed the price target for the electric vehicle (EV) manufacturer, citing mounting pressure on CEO Elon Musk.
In an investor note on April 6, Ives lowered TSLA’s stock price target by 42%, from $550 to $315. Despite the drastic reduction, the firm maintains its ‘Outperform’ rating on the stock.
To claim the revised price target, Tesla would need to rally 46% from the last session’s closing value of $239.43.
The new price target was informed by what Ives noted as the company’s brand increasingly suffering as it becomes a “political symbol,” a shift that has intensified in recent years amid Musk’s polarizing public statements and political involvement.
Considering Musk’s association with President Donald Trump, Ives emphasized that Musk’s current situation is pivotal and that there’s an urgent need to turn things around.
For the future, Wedbush remains optimistic, branding Tesla as a “long-term winner if Musk can execute,” citing the company’s history of resilience.
“We remain bullish on Tesla, but this is a critical moment for Musk. The brand is weakening as a political symbol, and the situation is unsustainable. Musk has overcome major challenges before — this may be his toughest yet,” Ives said.
Dark days ahead for Tesla
Ives warned of “darker days ahead” if Musk doesn’t act, citing softer demand and rising competition as key reasons for the price target cut amid concerns about Tesla’s slowing growth and economic headwinds.
The firm believes that while Musk has repeatedly defied the odds and emerged stronger after each challenge, the stakes may now be higher than ever.
Indeed, the market is already reacting to the new Wall Street price target revision, with TSLA stock dropping to as low as $215 in overnight trading.
Beyond Musk’s involvement in politics, Tesla is also facing other challenges, such as declining sales and rising competition from Chinese manufacturers.
To that end, on April 4, Tom Narayan, RBC Capital Markets’ global autos analyst, cut his Tesla price target by $120 to $320, citing intensifying competition in the full self-driving space.
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