Wedbush Securities analyst Dan Ives has significantly lowered his price targets for both Apple and Tesla due to the economic repercussions of President Trump’s tariff policies. Ives described the situation as an “economic Armageddon” for Apple, which relies heavily on Chinese manufacturing for its products, particularly the iPhone, with 90% of its devices produced and assembled in China. He warned that no other U.S. tech firm is as adversely affected by these tariffs as Apple.
As a result of the forecasted disruptions, Wedbush has revised its Apple stock price target from $325 to $250 per share. Currently, Apple’s share price is $180, reflecting a 4.3% decline in value.
In addition to Apple, Ives has also adjusted Tesla’s price target from $550 to $315, still higher than the company’s share price of $233.94 as of a recent market check. Alongside the tariffs, Ives pointed to CEO Elon Musk’s political affiliations as an additional factor impacting Tesla’s market performance. The analyst noted that Musk’s connections with Trump and related tariff policies have created a brand crisis for Tesla. This situation may have detrimental effects on sales not only within the U.S. and Europe but also in the Chinese market, encouraging consumers to prefer domestic alternatives like BYD.
Ives remarked that Tesla has transformed into a political symbol on the global stage and urged Musk to take charge and exhibit leadership amidst these turbulent times. Following a notable drop in Tesla shares of nearly 10% over the past week, there was some recovery observed by Monday afternoon.
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