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2w ago

Tesla Faces Intensifying Crisis as Stock Plummets and Analysts Slash Forecasts

Wedbush Securities lowers Tesla's price target by 43%, citing severe brand damage and tariff pressures, with Q1 sales falling short of expectations.

US President Donald Trump and Tesla CEO Elon Musk seem to be at odds over tariffs
Tesla CEO Elon Musk listens during a cabinet meeting held by President Donald Trump at the White House on March 24. Musk is the head of the Department of Government Efficiency (DOGE), leading a controversial effort to cut federal government spending.
Elon Musk's divisive politics means the demand destruction at Tesla is real, not imagined, warned Wedbush analyst Dan Ives.
Tesla Cybertrucks are seen parked at a Tesla sales lot in Plano, Texas.

Overview

  • Tesla's stock has dropped over 40% in 2025, with shares trading near record lows following escalating tariff impacts and brand challenges.
  • Wedbush analyst Dan Ives cut Tesla's price target from $550 to $315, highlighting a 'double whammy' of U.S. tariffs and Chinese retaliatory measures that threaten Tesla's market position, especially in China.
  • Q1 vehicle deliveries fell 32% quarter-over-quarter and 13% year-over-year, signaling weakening demand and raising concerns about Tesla's growth trajectory.
  • CEO Elon Musk's political associations and role in the Trump administration have eroded Tesla's global brand, with analysts estimating a loss of at least 10% of its future customer base worldwide.
  • Public protests, acts of vandalism, and growing competition from Chinese EV makers like BYD, Nio, and Xpeng further underscore Tesla's mounting challenges.