Apple & Tesla Face Challenges Amid Tariffs and Political Concerns
Wedbush Securities analyst Dan Ives recently lowered price targets for both Apple and Tesla, citing concerns over President Trump's tariffs and their potential impact on these tech giants. Ives believes that **Apple faces significant challenges** due to its heavy reliance on Chinese production, with approximately 90% of iPhones being manufactured and assembled in China. This exposure makes Apple particularly vulnerable to the effects of tariffs.
As a result, Wedbush reduced its price target for Apple stock by $75, bringing it down to $250 per share. The market reacted accordingly, with Apple's shares experiencing a decline of 4.3% and trading at $180 this afternoon.
Tesla also saw a price target reduction, with Ives lowering it from $550 to $315. While this new target remains above Tesla's current share price of $233.94, it still reflects concerns about the company's future performance.
Elon Musk's Politics and Brand Crisis
Ives pointed out that tariffs aren't the sole factor behind the price cut for Tesla. He emphasized that CEO Elon Musk's political stances have created a **brand crisis** for the automaker. Musk's association with Trump and his tariff policies are negatively impacting sales in the U.S. and Europe. Furthermore, Tesla's popularity in China is also at risk, potentially driving Chinese consumers toward domestic brands like BYD.
"Tesla has essentially become a political symbol globally," Ives wrote, urging Musk to take a more proactive and unifying role during this period of uncertainty. The market responded to this news, with Tesla shares initially dropping by nearly 10% compared to Friday's closing price before showing some recovery on Monday afternoon.
Source: TechCrunch