Tesla’s stock price drop has shocked investors as Wedbush analyst Dan Ives slashes targets amid growing concerns. With Apple’s stock price drop hitting around 25% year-to-date and Trump’s tariffs threatening global supply chains, many worried investors are asking if they should sell Tesla stocks before a tech stock crash.
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Navigating Tech Stock Risks Amid Downgrades And Tariff Fears
Tesla’s Perfect Storm: Tariffs and China Backlash
Tesla’s stock price drop has actually intensified after Ives cut his price target by a substantial 43% to $315. Tesla shares have tumbled 9.15% last week to $239.25, and are now down more than 50% from December’s peak of $488.54.
Dan Ives stated:
“Tesla is less exposed to tariffs than other US automakers, but there will be a clear cost impact. The bigger worry in our opinion is Tesla’s success in China as this key region is the linchpin to the future success of Tesla.”
He also added:
“Tesla has essentially become a political symbol globally. The brand crisis tornado that has now turned into an F5 tornado.”
According to Ives, Tesla has lost at least 10% of its future customer base, and European losses are potentially reaching 20% or more – damage he specifically called “all self-inflicted by Musk.”
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Apple Faces “Tariff Armageddon”
Apple’s stock price drop mirrors Tesla’s stock price drop concerns, with Wedbush also slashing Apple’s target by about 23% to $250. Both stocks are currently reflecting growing tech stock crash fears among investors and analysts alike.
Dan Ives warned in his Sunday note:
“The tariff economic Armageddon unleashed by Trump is a complete disaster for Apple given its massive China production exposure. In our view, no US tech company is more negatively impacted by these tariffs than Apple with 90% of iPhones produced and assembled in China.”
The Wedbush analysts further emphasized in their research:
“The hearts and lungs of the Apple supply chain are cemented in Asia.”
Should You Sell Tesla Stock Now?
Tesla’s stock price drop really raises some critical questions for investors at this moment. With proposed 54% levies on Chinese imports and another 32% on Taiwanese goods, both Tesla and Apple are facing serious supply chain challenges in the coming months.
For Tesla, political associations are also complicating matters even further. Musk’s connections to Trump may be driving customer backlash, especially in Europe and China. Some recent signals show Musk potentially trying to distance himself from Trump’s trade policies. However, this point may come too late as the damage already exists.
Trump’s tariffs could accelerate a broader tech stock crash scenario, particularly hurting companies with heavy Asian supply chain dependencies such as Tesla and Apple.
Investment Outlook Amid Market Turbulence
At the time of writing, Apple’s stock has fallen 13.55% to $188.38 last week, hitting 10-month lows and now trading about 28% below December’s high. Wedbush’s bear case for Apple is currently $160, while their bull case – assuming some tariff exemptions – returns to a more optimistic $325.
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For investors concerned about the ongoing Tesla stock price drop, timing really matters here. Both companies are facing critical quarters ahead as they navigate the tariff impacts and try to provide updated guidance to reassure investors.