Wedbush analyst Daniel Ives slashed his price target on Tesla as the electric vehicle maker's leader faces a brand crisis, while the company also faces pressure from President Donald Trump's latest tariffs. Ives, who has been one of Tesla's biggest bulls on Wall Street, slashed his 12-month price target to $315 from $550. The new forecast still represents upside of nearly 32% from Tesla's Friday close. Shares of the electric vehicle stock have tumbled 41% this year on concern that CEO Elon Musk's growing political profile could hurt sales. The company last week reported that first-quarter vehicle deliveries declined 13% year over year . TSLA 1Y mountain TSLA 1Y chart "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," Ives wrote. "We now estimate Tesla has lost/destroyed at least 10% of its future customer base globally based on self created brand issues and this could be a conservative estimate." The analyst also pointed to softer demand as a headwind for Tesla due to new tariffs from President Donald Trump. While Tesla is less exposed to the levies than other U.S. automakers, the company still derives a considerable amount of parts from ex-U.S. sources such as China, Ives highlighted. These tariffs will clearly affect Tesla's cost impact, ultimately resulting in some demand destruction, Ives wrote. "The economic tariff Armageddon unleashed by the Trump Administration is a double whammy for Tesla in our view," he said. Ives did maintain his outperform rating on the stock, pointing out that in the past, Musk has been able to guide Tesla out of tough spots. But the current situation for the company remains one of his biggest challenges so far to navigate through. "Our long standing bull view of Tesla remains, but there is no denying this is a pivotal moment of truth for Musk to turn things around … or darker days are ahead," he said. "The future is so bright for Tesla with Austin's unsupervised FSD, lower-cost vehicles, and of course the autonomous and robotics future … but this is a full blown crisis Tesla is navigating now, and it is time for Musk to step up, read the room, and be a leader in this time of uncertainty." Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
