Wall Street analyst Dan Ives, long bullish on Tesla, has soured on the stock.

Dan Ives, a prominent Wall Street analyst known for his bullish outlook on Tesla, has issued a stark warning regarding the electric vehicle manufacturer’s future. In a recent report from Wedbush Securities, Ives slashed his price target for Tesla stock from $550 to $315, marking a significant 43% reduction, even though this new target still maintains an optimistic outlook compared to the stock's current price of $239. Ives described Tesla as having transformed into a 'political symbol' on a global scale, a change he believes poses serious risks to the company's brand and long-term viability. According to Ives, Tesla might have already lost at least 10% of its future customer base due to issues attributed to its CEO Elon Musk, and he suggests that expected tariff impacts from the Trump administration may exacerbate these challenges. The analyst expressed concern that Musk's political engagement has negatively impacted the brand, suggesting that anti-Trump sentiment in countries like China could lead to a preference for domestic brands such as BYD and Nio, directly affecting Tesla's sales in a crucial market. Wedbush noted Tesla's first-quarter delivery numbers were disappointing, reflecting a 13% year-over-year decline, indicating potential further struggles ahead. Ives cautioned that if Musk does not alter his current political trajectory or refocus on the company's core mission, the outlook may worsen significantly. In my analysis, Ives's insights signify a crucial juncture for Tesla. The company's ability to navigate political landscapes, particularly in pivotal markets like China, remains a key concern. The intertwining of business and politics can alienate consumers, especially in a landscape where environmentally conscious car buyers are increasingly critical of political affiliations. The sentiment conveyed by long-time supporters like Ives suggests a growing unease not only about Tesla's sales but also about its public image, which may be struggling under the weight of external factors beyond market competition. The current situation represents a dramatic evolution from Tesla's previous standing as an untouchable leader in the EV space to an entity now tethered to political narratives. This analysis has been reviewed by artificial intelligence for accuracy and relevancy related to the current market dynamics.