Tesla shares achieved great success on Monday after one of the prominent analysts cut off his target price by more than 40 %, citing the “perfect storm” created by the Trump car tariff and the deterioration of Elon Musk’s reputation.
The Wedbush Securities Dan IVES analyst has reduced the target price from $ 550 to $ 315 during the weekend while maintaining its “superior” rating on the arrow.
The shares decreased up to 216 dollars on Monday morning, a decrease of more than 9 %. They closed at 233.29 dollars on Monday afternoon, a decrease of 2.5 % for this day.
American Trade Minister Howard Lootnick urged Fox News viewers to buy Tesla shares last month, announcing that the shares would not “be never cheap” when they closed at $ 235.86 on March 19. The next day, Tesla employee encouraged them to “comment on their shares in all medicines.
The shares decreased nearly 40 % since the beginning of the year and decreased by 55 % of the record in December. The stock rose with Trump’s victory over Kamala Harris in the presidential elections for the month of November, when many believe that the association of musk with the elected president will enhance the value of Tesla.
However, the controversial Musk role in the Trump administration has created the “brand crisis” for its electric car company. Since some Tesla owners once denounced the environmental benefits of the Musk, which runs a White House advisory team he calls the government competence section.
Trump opponents organized Tesla’s fighting protests and even sabotaged or destroyed Tesla vehicles and shipping stations.
“The higher the number of Meski in the Trump and Doug administration, the brand damage will move from a permanent containment,” Evz said in an interview. “Tesla has become a political symbol around the world and this is not a good thing.”
Tesla, which is located in Austin, Texas, but has an important manufacturing factory in Freemon, California, expected about 10 % of its future customer base worldwide, due to the brand issues “caused by musk”. Evz said the company’s reputation is under fire in China, as consumers interact with Trump’s tariff policies.
Tesla representative cannot be reached immediately for comment.
Trump’s car tariff will increase supply chains and increase the price of vehicles and parts, which may harm the sales of Tesla. While Tesla is less exposed to definitions from other American auto manufacturers such as Ford and Westlanties, the company is still the sources of several parts and batteries from outside the country.
Tesla delivered 336,681 cars in the first quarter, The company announced This month, much less than the 400,000 original industry estimates.
He said IVES is still optimistic about the company’s plans for independent driving technology and the Robotaxi service.
Technology shares have also achieved great success since Trump revealed a new tariff, confirming uncomfortable investors. Last week, analysts said that the Apple iPhone price may cost $ 2,500 more dependent on the model. Since April 2, when Trump announced a new tariff, the Apple share price decreased about 19 %.
The customs tariff can also create data centers and affect companies such as Meta that earns money from advertisers in China.
Stock prices were affected up and down amid rumors that Trump could stop the drivers for 90 days, however White House Reward the claim on social media.
On Monday, Apple’s shares were closed at $ 181.46, a decrease of 3.6 %. Other technology companies, including Google, have seen Alphabet, Nvidia and Amazon, the price of its shares a little. Meta, which released the latest artificial intelligence model during the weekend, closed by 2.3 % at 516.25 dollars.