Longtime Bull Dan Ives Just Slashed His Price Target on Tesla -- Shares Are Falling

Core Viewpoint - Tesla's stock has experienced significant volatility, with a notable drop of up to 10.5% before stabilizing, as analyst Dan Ives reduced his price target by 43% while maintaining a buy rating [1][2]. Group 1: Price Target Adjustment - Dan Ives lowered his price target for Tesla from $550 to $315, indicating a potential upside despite the stock being down approximately 42% this year [2]. - The reduction in price target reflects concerns over Tesla's performance and market position, particularly in light of recent events [3]. Group 2: Brand and Political Challenges - Ives attributed the lowered price target to a "Musk-created brand crisis" and the impact of Trump tariffs, which he described as a "perfect storm" for Tesla [3]. - Tesla has become a political symbol, which Ives believes negatively affects its future, estimating a loss of at least 10% of its future customer base due to self-created brand issues [4]. Group 3: Market Position and Valuation - Tesla's core electric vehicle business is struggling, and its valuation is heavily reliant on upcoming full self-driving and robotics divisions [5]. - Despite the recent sell-off, Tesla's stock trades at nearly 90 times forward earnings, raising concerns about its expense in the current market environment [5].