Tesla's Stock Plummets: Dan Ives Slashes Target to $315 Amid Tariff Turmoil

Ladies and gentlemen, buckle up! The electric vehicle (EV) market is in for a wild ride, and Tesla (TSLA) is at the center of the storm. Dan Ives, the long-time Tesla bull from Wedbush Securities, has just slashed his price target for the stock from $550 to $315, a whopping 43% reduction. This is not just a minor adjustment; it's a full-blown warning shot across the bow of the EV industry. Let's dive into the chaos and see what's driving this dramatic shift.

First things first, the tariff fallout between the U.S. and China is a nightmare for Tesla. President Donald Trump's 54% tariff on Chinese goods and China's retaliatory 34% tariff on U.S. goods are creating a perfect storm for the EV giant. Tesla relies heavily on Chinese suppliers for critical components like batteries, and this trade war is going to hit them hard. Ives warns that Tesla's success in China, a key market for its future, is now in jeopardy. Chinese consumers are already turning to domestic brands like BYD, Nio, and Xpeng, and this trend is only going to accelerate.

But the tariffs are just the tip of the iceberg. Tesla has become a political symbol globally, and that's a very bad thing for the brand. Elon Musk's foray into politics and his association with Trump have created a brand crisis tornado that's turning into an F5. Ives estimates that Tesla has already lost 10% of its future global customer base due to these self-inflicted wounds. In Europe, the number could be as high as 20%. This is a disaster on every metric, and it's time for Musk to step up and take control.

The delivery numbers speak for themselves. Tesla's first-quarter deliveries for 2025 came in at nearly 336,700, a 13% year-over-year decrease. This is a brutal year ahead if Musk doesn't exit stage left or take a step back on DOGE in the coming month. Even early Tesla investor Ross Gerber has bristled at Tesla's decline, calling the high-end EV business "totally eroded" and the brand "broken and may not be fixable."



So, what does this mean for Tesla's stock? Well, it's been a bloodbath. Tesla's stock price has dropped almost 37% since the start of the year and over 50% from a record high on December 17, 2024. This is a clear sign that the market has lost confidence in the company, and it's time for investors to take notice.

But it's not all doom and gloom. Ives still maintains an "Outperform" rating on Tesla, and there are some bright spots on the horizon. Unsupervised Full Self-Driving is rolling out this summer, and lower-cost models are in the works. These could be game-changers for Tesla, but only if Musk can turn things around.

So, what's the bottom line? Tesla is in a world of hurt, and the tariff fallout is just the beginning. Musk needs to get his act together, and fast. The future of Tesla is at stake, and it's time for the EV giant to step up and face the music. Stay tuned, folks, because this is going to be one heck of a ride!