Over the weekend, Dan Ives, an analyst at Wedbush Securities, adjusted his price targets downward for both Apple and Tesla, in response to President Trump’s tariffs, which threaten to disrupt the operations of these companies.
Ives described the tariffs as an “economic Armageddon” for Apple, highlighting the company’s heavy reliance on production in China. According to Ives, no other U.S. tech company is as adversely affected by these tariffs as Apple, which manufactures and assembles 90% of its iPhones in China.
As a result, Wedbush has lowered its price target for Apple stock by $75, setting it at $250 per share. Currently, Apple’s shares have decreased by 4.3%, trading at $180.
Ives also reduced the price target for Tesla, bringing it down to $315 from $550, although this remains above Tesla’s current share price of $233.94 as of 2:10 p.m. ET.
While acknowledging that tariffs are not the sole reason for the price cut, Ives mentioned Tesla CEO Elon Musk’s political involvement as a contributing factor to the automaker’s brand challenges. Musk’s association with Trump and the related tariff policies are reportedly affecting Tesla’s sales in the U.S. and Europe, while also posing a threat to the brand’s appeal in China. According to Ives, this situation is pushing Chinese consumers toward domestic brands like BYD.
Ives noted that globally, Tesla has essentially become a political symbol, urging Musk to take leadership amid these uncertain times. Although Tesla shares experienced a nearly 10% drop compared to Friday’s closing price, they have shown some recovery by Monday afternoon.
