Analyst Reveals Apple and Tesla Face Major Risks from Trump’s Tariffs
In a recent analysis, Wedbush Securities analyst Dan Ives has sharply revised his price targets for two major tech companies, Apple and Tesla. This adjustment comes as President Trump’s tariffs raise concerns about potential disruptions to these businesses. The impact of these tariffs could lead to significant changes in how these companies operate, particularly with their strong ties to China.
Impact of Tariffs on Apple
Ives highlighted that the tariffs represent an “economic Armageddon” for Apple, primarily due to the company’s extensive production in China. He stated, “In our view, no U.S. tech company is more negatively impacted by these tariffs than Apple, with 90% of iPhones produced and assembled in China.”
Revised Price Target for Apple
- Price target cut from $325 to $250 per share
- Current share price: $180, a drop of 4.3%
Effects on Tesla’s Valuation
Similarly, Ives reduced his target for Tesla, lowering it from $550 to $315. Despite this adjustment, the new target remains significantly above Tesla’s current trading price of approximately $233.94 as of 2:10 p.m. ET.
Factors Influencing Tesla’s Price Cut
Beyond tariffs, Ives pointed out that CEO Elon Musk’s political affiliations are also contributing to a brand crisis for Tesla. His connections with Trump and the associated tariff policies are causing a decline in sales both in the U.S. and Europe. This situation may further push Chinese consumers towards domestic brands like BYD.
Market Reaction
Following these announcements, Tesla’s shares experienced a decline of nearly 10% compared to Friday’s closing price, although there has been a slight recovery as of Monday afternoon.
Conclusion
As both Apple and Tesla navigate these turbulent times, the impact of international trade policies and political dynamics will be crucial for their future. Investors are advised to stay informed about these developments, as they could significantly affect market performance.
For more insights on technology market trends, visit our Technology Trends page, or explore related articles on Forbes.
