From Nasdaq: 2025-04-21 04:24:00

In December, Tesla stock peaked at $480 per share following Donald Trump’s election win, thanks to support from CEO Elon Musk. However, the stock has since plummeted 50% due to Musk’s political involvement, causing a “brand crisis” for the company, according to analyst Dan Ives at Wedbush Securities.

Dan Ives, a big Tesla bull, warns that Musk’s politics could permanently damage the company’s brand. Ives previously touted Tesla’s potential post-election, predicting a $600 per share target as the company focused on AI products. However, Musk’s ties to Trump have negatively impacted Tesla’s sales and market share worldwide.

Tesla’s sales have declined globally, with first-quarter deliveries dropping 13%. Market share losses have been significant, especially in the U.S., Europe, and China. Ives sees this as a crisis created by Musk’s politics, leading to potential “permanent brand destruction.” Despite cutting his target price, Ives still maintains a buy rating on the stock.

While earnings estimates for Tesla have been lowered by Wall Street, the company has opportunities in robotaxis and robotics. The launch of robotaxi services and humanoid robots could lead to significant growth, potentially making Tesla one of the most valuable companies in the world. Investors should weigh the execution risk against the potential rewards when considering Tesla stock.



Read more at Nasdaq: Tesla Stock Has Crashed 50% and Investors Just Got Bad News From One of Wall Street’s Biggest Bulls