Tesla(US:TSLA) The Motley Foolยท2025-04-10 08:19Core Viewpoint - Dan Ives, a prominent technology analyst, has significantly reduced his price target for Tesla stock from $550 to $315, citing concerns over declining sales and the impact of CEO Elon Musk's political involvement on the brand [1][3]. Sales Performance - Tesla delivered 1.79 million cars in 2024, marking a 1% decline from 2023, the first annual sales drop since the launch of the Model S in 2011 [4]. - In Q1 2025, Tesla reported only 336,681 EV deliveries, a 13% decrease compared to the same period last year, with sales declining in most European markets despite overall EV adoption growth [5]. Customer Base and Brand Impact - Ives estimates that Tesla has lost 10% of its future customer base globally due to Musk's political activities, which he considers a conservative estimate [6]. - Protests against Tesla have occurred worldwide, leading to physical damage at dealerships and negative experiences for private Tesla owners, potentially deterring future purchases [7]. Competitive Landscape - Import tariffs announced by President Trump are expected to increase Tesla's costs, as the company sources many components from abroad, while facing price competition from Chinese manufacturers like BYD and Great Wall, which offer entry-level EVs under $15,000 [8]. Future Growth Opportunities - Musk envisions a $1 trillion opportunity in autonomous vehicles, with the launch of the Cybercab, a fully autonomous ride-hailing service powered by Tesla's FSD software [9][11]. - However, the Cybercab lacks regulatory approval in the U.S., and delays could hinder its competitive position against established players like Waymo [10]. Financial Outlook - Tesla's EPS fell by 53% to $2.04, resulting in a P/E ratio of 122.2, significantly higher than the S&P 500's 21.8 [14]. - Continued declines in EV sales could lead to further drops in EPS, making the stock appear even more expensive and challenging the feasibility of Ives' price target [15][16].