| | | Tech bull Dan Ives slashes PT for Tesla, Apple over Trump's 'tariff armageddon'
Apr. 06, 2025 2:47 PM ET
By: Vansh Agarwal, SA News Editor
President Donald Trump's sweeping global tariffs announced on Wednesday constitute a disaster for Tesla (NASDAQ: TSLA) and Apple (NASDAQ: AAPL), said Wedbush Securities analyst Dan Ives, substantially lowering his price target for both the tech giants.
Ives, traditionally one of Tesla ( TSLA) and Apple's ( AAPL) most bullish followers and advocates on Wall Street, slashed the electric vehicle maker's PT from $550 to $315, an over 40% cut, and reduced the iPhone maker's PT from $325 to $250, a 20% fall.
Wedbush's bear case for Apple ( AAPL) is $160. The firm maintained its Outperform rating for both the stocks.
Trump on Wednesday unveiled the steepest American tariffs in over a century, taking aim at nearly every major U.S. trading partner.
Perfect Storm for Tesla
Calling Trump's "Liberation Day" tariffs a "double whammy" for Elon Musk's Tesla ( TSLA), Ives expressed concerns over Chinese consumer backlash against the American electric vehicle maker, given Musk's close relationship with Trump.
"Tesla has essentially become a political symbol globally....and that is a very bad thing for the future of this disruptive tech stalwart and the brand crisis tornado that has now turned into an F5 tornado," said Ives.
According to his estimates, Tesla ( TSLA) has lost 10% of its future customer global base due to "self created brand issues," with the number possibly hitting 20% in Europe.
On Saturday, thousands of protesters rallied across the U.S. against Trump and Musk, taking issue with an administration that they claim is attacking democracy and calling for a stop to efforts to shrink the government.
Ives called for Musk to "step up, read the room, and be a leader," highlighting Tesla's ( TSLA) potential with Full Self-Driving, lower cost models, and the autonomous and robotics future.
Wedbush is now considering "new reduced estimates for 2025/2026" for Tesla ( TSLA), said Ives.
Upside Down Supply Chain for Apple
Apple ( AAPL) is the most negatively impacted U.S. tech company by Trump's "tariff economic Armageddon," given its massive manufacturing exposure to China, said Ives.
With 90% of iPhones produced in China, over 50% of Mac products, and 75%-80% of iPads, Ives labelled the newly announced tariffs are a "complete disaster" for the Cupertino-based giant.
"The reality is it would take 3 years and $30 billion dollars in our estimation to move even 10% of its supply chain from Asia to the U.S. with major disruption in the process," said Ives.
Ives does not believe it would be possible for Apple ( AAPL) to build a $1,000 iPhone in the U.S., with a domestically manufactured iPhone expected to sell for $3,500.
"Price points would move up so dramatically it's hard to comprehend and the near-term margin impact on Apple's gross margins during this tariff war could be mind boggling for this US tech stalwart," said Ives.
The investment firm does not expect most tech firms, including Apple ( AAPL), to provide guidance on conference calls next month, given the heightened uncertainty.
Stock Moves
Following Wednesday's tariff announcements, the Nasdaq has plunged over 11% into bear territory, undergoing its worst crisis since the COVID-19 market crash in 2020.
Since Trump's inauguration on January 20th, Tesla ( TSLA) shares have plunged 44% and Apple's 18%. |
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