Tesla enthusiast Dan Ives has adjusted his stance by reducing his price target and mentioning Trump's tariffs on automobiles and Elon Musk's role in the White House as the factors influencing his decision.

Despite maintaining his Outperform rating, the Wedbush analyst lowered his price target from $550 to $315, representing a significant decrease of nearly 43%.

Ives expressed concerns about the impact of Trump's tariffs on Tesla and its reliance on parts sourced from China, such as battery cells, even though the company is less exposed compared to competitors like GM and Ford.

Tesla's stock initially dropped by 4% but recovered slightly following news that Trump might consider a 90-day tariff pause. However, shares were still down over 5% in midmorning trading.

Ives highlighted Tesla's branding issues as the most worrying aspect. He mentioned that the company has become a political symbol globally, which could jeopardize its future. Ives blamed Musk for the deteriorating brand image, suggesting that self-inflicted damage has caused Tesla to lose a significant portion of its customer base.

The ongoing protests at Tesla showrooms worldwide have added to the negative sentiment surrounding the company, resulting in a 43% decline in its stock value so far this year.

Furthermore, Ives emphasized the threat to Tesla's business in China due to Trump's tariffs and Musk's close ties to the president. He predicted that Chinese consumers might increasingly turn to domestic EV brands like BYD, Nio, and XPeng.

Although Tesla saw a rebound in Model Y sales in March after the refreshed vehicle became available in showrooms, overall China-made EV sales dropped by 11.5% in the month.

On a global scale, Tesla reported a Q1 sales slump of 336,681 deliveries, falling short of the estimated 390,342, making it the worst delivery quarter since Q2 of 2022.

Ives believes that Tesla is facing a severe crisis, compounded by the tariffs, and urges Musk to step up as a leader during this uncertain time.