A new report from Wedbush says Tesla is facing a “perfect storm” as political controversy and new U.S. tariffs threaten to damage the company’s brand and global business. The investment firm lowered its 12-month price target for Tesla stock from $550 to $315, though it still maintains an “Outperform” rating.
In the April 6 note, Wedbush analysts warned that while Tesla is less exposed to U.S. tariffs than rivals like GM or Ford, the company still relies heavily on overseas parts and batteries, including from China. These supply chain costs could be passed on to U.S. consumers, potentially hurting demand.
But the bigger concern, according to Wedbush, is the growing backlash in China and Europe—two crucial markets for Tesla. The report links the company’s troubles to CEO Elon Musk’s increasingly political image, saying Tesla has become a “global political symbol,” which is turning off potential buyers.
Wedbush estimates that Tesla has already lost at least 10% of its future global customer base due to self-inflicted brand damage. In Europe, that figure could be 20% or higher, the firm says. Protests at dealerships and reports of Tesla vehicles being vandalized have added to the negative sentiment.
Despite the setbacks, Wedbush still believes in Tesla’s long-term potential, citing developments in autonomous driving, robotics, and lower-cost EVs. But the firm says Musk must “step up” and repair the damage if Tesla wants to regain momentum.
“This may be one of his biggest challenges yet,” the note concludes.
Tesla shares are trading at $227 per share, down 4.8% on Monday, as part of a continued global stock selloff due to U.S. tarriffs.
