Wedbush Securities analyst Dan Ives warned that Apple and Tesla are most vulnerable to new tariffs imposed by the Donald Trump administration, TechCrunch reports.
According to Ives, Apple will be particularly hard hit by its heavy reliance on manufacturing in China, where about 90% of iPhones are made. Ives called the situation an "economic apocalypse" for the company. In response, he cut his target price for Apple shares by $75 to $250. By the way, according to Bloomberg, Apple is likely to raise iPhone prices in the US due to Trump's new tariffs.
As for Tesla, the company’s target price for its shares has also been cut from $550 to $315, which, while still above the current price of $233, indicates a loss of investor confidence. Ives stressed that the company is being affected not only by tariffs but also by the political activity of its CEO Elon Musk. His association with Trump is negatively affecting sales in both the US and Europe, and also jeopardizes Tesla’s popularity in China, where buyers may prefer local brands such as BYD.
The analyst noted that Tesla has become a political symbol on a global scale. He called on Musk to understand the situation and demonstrate leadership in the face of uncertainty.
Although Tesla shares recovered somewhat on Monday, they had previously lost almost 10% of their value compared to Friday.
By the way, according to The Washington Post, Musk asked Trump to cancel the new tariffs.