Wedbush Securities analyst Dan Ives issued a stark warning this weekend, slashing price targets for Apple and Tesla. The move comes as President Trump’s aggressive tariff policies threaten to disrupt supply chains and consumer demand for both tech giants.
Apple’s China Exposure: An Economic “Armageddon”
Ives characterized the current tariff environment as an “economic Armageddon” for Apple, primarily due to its heavy reliance on Chinese manufacturing. With approximately 90% of iPhone production and assembly concentrated in China, the company faces unparalleled risks compared to other U.S. technology firms.
Reflecting these concerns, Wedbush reduced its price target for Apple stock by $75, bringing it to $250 per share. Following the announcement, Apple shares retreated 4.3%, trading at $180.
Tesla’s Double Threat: Tariffs and Brand Crisis
Tesla also saw a significant downward revision, with its price target cut from $550 to $315. While the stock currently trades at $233.94, the analyst noted that market volatility remains elevated. Beyond the direct impact of tariffs, Ives highlighted a growing “brand crisis” linked to CEO Elon Musk.
According to the Wedbush report, Musk’s vocal political alignment with President Trump has alienated segments of the consumer base in the United States and Europe. Furthermore, this political association is actively damaging Tesla’s standing in China, where consumers are increasingly shifting toward domestic competitors like BYD.
A Call for Leadership
Ives emphasized that Tesla has effectively transformed into a “political symbol” on the global stage, a transition that threatens long-term market share. As he wrote, “It is time for Musk to step up, read the room, and be a leader in this time of uncertainty.”
Tesla shares experienced a sharp decline of nearly 10% earlier today compared to Friday’s closing price, though the stock has shown signs of a slight rebound as of Monday afternoon.