Tesla's actions received a success on Monday after an outstanding analyst cut its target price in more than 40%, citing a “perfect storm” created by the automotive rates of President Trump and the deteriorated reputation of Elon Musk.
Wedbush Securities Dan Ives analyst reduced its target price from $ 550 to $ 315 over the weekend while maintaining its “higher performance” rating of shares.
The shares fell as low as $ 216 on Monday morning, a fall of more than 9%. They closed to $ 233.29 on Monday afternoon, 2.5% less for the day.
The United States Secretary of Commerce, Howard Lutnick, urged Fox News viewers to buy Tesla shares last month, stating that the shares “would never be so cheap” when they closed to $ 235.86 on March 19. The next day, Musk encouraged Tesla employees to “endure” their actions at a total meeting.
The shares have collapsed almost 40% since the beginning of the year and have fallen 55% of a record in December. The action shot with Trump's victory over Kamala Harris in the November presidential elections, as many believed that the Musk Association with the president -elect would boost the value of Tesla.
However, Musk's controversial role in the Trump administration has created a “brand crisis” for its electric vehicle company, IVES said. Some Tesla owners once attracted to the environmental benefits of the vehicle have denounced Musk, who runs a White House advisory team called the government's efficiency department.
The opponents of Trump and Musk have organized protests against Tesla and have even destroyed or destroyed Tesla vehicles and cargo stations.
“The more musk the Trump and Doge administration is attached, the brand's damage passes from container to permanent,” Iives said in an interview. “Tesla has become a political symbol worldwide and that is not a good thing.”
Tesla, based in Austin, Texas, but has a significant manufacturing plant in Fremont, California, has lost about 10% of its future customer base worldwide, IVES predicted, due to brand problems “self -inflicted by Musk”. The company's reputation is under fire in China, where consumers are reacting to Trump's tariff policies, IVES said.
A Tesla representative could not be contacted immediately to comment.
Trump automatic tariffs will change supply chains and increase the price of vehicles and parts, which could further damage Tesla sales. While Tesla is less exposed to tariffs than other American car manufacturers such as Ford and Stellantis, IVES said, the company still obtains several pieces and batteries outside the country.
Tesla delivered 336,681 vehicles in the first quarter, the company announced this month, well below the original estimates of the 400,000 industry.
IVES remains optimistic about the company's plans for autonomous driving technology and a Robotaxi service, he said.
Technological actions have also received great success since Trump announced new tariffs, underlining the concern among investors. Last week, analysts said that Apple's price could cost $ 2,500 more depending on the model. Since April 2, when Trump announced new rates, the price of Apple shares has sunk approximately 19 %.
Tariffs could also make it more expensive to build data centers and affect companies as a goal that earn money from advertisers in China.
Shares prices increased up and down in the middle of rumors that Trump could stop tariffs for 90 days, but the White House refuted the claim in social networks.
On Monday, Apple shares closed to $ 181,46, 3.6%less. Other technological companies, including Google's parent company, Alphabet, Nvidia and Amazon, saw that the prices of their actions increased slightly. Goal, which launched its latest artificial intelligence model over the weekend, closed 2.3% to $ 516.25.
