Apple, Tesla Face Biggest Tariff Exposure - Analyst Report

Analyst Downgrades Apple and Tesla Amidst Tariff Concerns

Dan Ives, an analyst at Wedbush Securities, has revised downwards his price predictions for both Apple and Tesla in response to escalating tariffs announced by President Trump.

Ives issued a cautionary note over the weekend, asserting that the economic repercussions of Trump’s tariffs represent a significant setback for Apple. This is due to the company’s substantial reliance on manufacturing within China.

Apple's Exposure to Tariffs

According to Ives, Apple is uniquely vulnerable among U.S. technology firms. Approximately 90% of iPhone production and assembly currently takes place in China.

As a result, Wedbush reduced its price target for Apple stock by $75, setting it at $250 per share. Currently, Apple’s stock is experiencing a decline of 4.3%, trading at $180.

Tesla's Price Target Revision

The price target for Tesla was also lowered, adjusted from $550 to $315. Despite this reduction, it remains considerably higher than Tesla’s present share price of $233.94 (as of 2:10 p.m. ET).

Factors Beyond Tariffs Impacting Tesla

Ives clarified that the tariff implications are not the sole driver behind the Tesla price cut. Concerns surrounding the public statements and political affiliations of CEO Elon Musk are also contributing factors.

Musk’s perceived alignment with Trump and his tariff policies are reportedly impacting sales figures in both the United States and Europe. Furthermore, these associations pose a threat to Tesla’s market position in China.

Ives noted that this situation is potentially encouraging Chinese consumers to favor domestic automotive brands, such as BYD.

The Political Dimension

“Tesla has essentially become a political symbol globally,” Ives stated. He urged Musk to demonstrate leadership and address the current climate of uncertainty.

Tesla’s shares initially experienced a drop of nearly 10% compared to Friday’s closing price, although a partial recovery has been observed as of Monday afternoon.