Wedbush Securities analyst Dan Ives slashed his worth targets for Apple and Tesla over the weekend as President Trump’s tariffs threaten to disrupt each companies.
“The tariff financial Armageddon unleashed by Trump is an entire catastrophe for Apple given its huge China manufacturing publicity,” Ives mentioned in a warning notice over the weekend. “In our view, no U.S. tech firm is extra negatively impacted by these tariffs than Apple with 90% of iPhones produced and assembled in China.”
Wedbush lower its worth goal for Apple inventory by $75, right down to $250 per share. Apple’s shares are down this afternoon by 4.3% and buying and selling at $180.
Ives additionally lower his worth goal for Tesla to $315 from $550, which remains to be effectively above Tesla’s present share worth of $233.94 as of two:10 pm ET.
Ives mentioned the have an effect on of tariffs isn’t the one purpose for the worth lower. He additionally cited CEO Elon Musk’s politics, which has created a model disaster for the automaker. Musk’s affiliation with Trump and his tariffs insurance policies are affecting gross sales within the U.S. and Europe and in addition threaten Tesla’s recognition in China, “additional driv[ing] Chinese language shoppers to purchase home akin to BYD,” mentioned Ives.
“Tesla has primarily grow to be a political image globally,” he wrote. “It’s time for Musk to step up, learn the room, and be a frontrunner on this time of uncertainty.
Tesla shares had been down practically 10% in comparison with Friday’s closing worth, however have rebounded considerably as of Monday afternoon.