In a shocking turn of events, two of America’s most iconic tech companies, Apple and Tesla, are facing a major financial storm. President Trump’s newly announced tariffs have sent waves of disruption through the global economy, and now, both companies are grappling with the fallout. Wedbush Securities analyst Dan Ives has raised alarm bells, signaling serious risks for both businesses, with Apple feeling the heaviest blow. In a strongly worded note, Ives warned,
“The tariff economic Armageddon unleashed by Trump is a complete disaster for Apple given its massive China production exposure.” He continued, “In our view, no U.S. tech company is more negatively impacted by these tariffs than Apple with 90% of iPhones produced and assembled in China.”
As a result, Wedbush slashed its price target for Apple stock by $75, lowering it to $250 per share. The market responded swiftly, Apple shares dropped by 4.3% and were trading at around $180 by Monday afternoon. Tesla is also feeling the heat. Ives downgraded Tesla’s price target from $550 to $315, still above its current share price of $233.94. But tariffs aren’t the only issue Tesla faces.
According to Ives, CEO Elon Musk’s political image is playing a role in damaging the automaker’s reputation. His connection to Trump and the administration’s trade policies is hurting Tesla’s appeal in both the U.S. and European markets. Ives also pointed out growing risks in China, where national pride is steering consumers toward local brands like BYD.
“Further driv[ing] Chinese consumers to buy domestic products such as BYD,”
He also wrote about Musk’s role:
“Tesla has essentially become a political symbol globally.” He urged Musk to act wisely, adding, “It is time for Musk to step up, read the room, and be a leader in this time of uncertainty.”
Tesla’s shares plunged nearly 10% compared to Friday’s close although a partial rebound was seen by Monday afternoon. This development marks a critical moment for two of America’s most iconic tech brands, as they navigate economic uncertainty, political pressure, and shifting global trade dynamics.
