Tesla Target Price Cut by 43%... Even Wall Street Pro-Musk Turns Away

U.S. Tariffs and Musk's Brand Image Crisis
Target Price Slashed by 43% to $315 per Share

Dan Ives, a Wedbush Securities analyst who has been the most bullish on Tesla on Wall Street, has cut Tesla's price target by 43%. He cited a "perfect storm" for Tesla caused by a brand crisis created by Musk combined with tariffs imposed by Trump as the reason for his changed outlook.

According to MarketWatch, a comprehensive U.S. economic media outlet, on the 7th (local time), Ives lowered Tesla's price target from the highest among major analysts at $550 (approximately 805,365 KRW) to $315 per share (approximately 461,254 KRW), a 43% drop. Tesla delivered about 337,000 vehicles in the first quarter, which is a 13% decrease compared to the same period last year and about 40,000 units fewer than Wall Street's expectations.

Ives stated, "Investors did not have to worry about deliveries for a long time," and added, "Immediately after Tesla reported the numbers, President Donald Trump announced tariffs on dozens of countries that were much higher than expected. Wall Street had anticipated an average import tariff rate of 10% to 15%, but it ended up being close to 25%."

He continued, "The economic tariffs triggered by the Trump administration impose a double burden on Tesla," adding, "They disrupt the global supply chain and will make competition with Chinese electric vehicle company BYD more difficult."

In fact, experts expect that Chinese BYD will surpass Tesla to become the global electric vehicle sales leader this year due to the impact of the Trump administration's tariff policies. Since only 0.4% of BYD's sales are in the U.S., if competitors like Toyota and Hyundai Motor Group lose competitiveness in price and other factors due to U.S. tariffs, BYD is likely to enjoy a windfall benefit in the global market.