Tesla Stock Has Crashed 50% and Investors Just Got Bad News From One of Wall Street’s Biggest Bulls

Visitation (NASDAQ. TSLA) In December, the shares reach $ 480. At that time, Donald Trump simply won the presidential election with huge financial support from Elon Mushk, and investors were convinced that the company would benefit from their relationships. But the opposite happened.

Tesla’s shares have decreased by 50% and market share losses have accelerated, as Musk’s involvement in politics has created a “Brand Crisis”, according to the stock analyst in Vedbush’s securities.

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It is important that Iwents consistently been the largest Tesla Bulls of Wall Street. However, he now says that the company has reached a crossroads that can change the investment thesis in principle if the Musk cannot freely leave politics. Here’s what investors need to know.

Dan Ives has consistently had positive things in Wedbush Securities to say Tesla. He described Muscial’s decision to support the presidential election as “bet for centuries”, assuming that their ties will benefit Teskla, eliminating the regulatory red ribbon Autonomous driving technology and simplify the deployment of robotaxes.

Moreover, CNBC said that Tesla was the most effective AI name in the market after the November elections. ” He challenged shares can hit $ 600 per share, as the company relies on artificial intelligence products and services, as autonomous swimwear and autonomous humanitarian robots. However, the decision to return the victory of Musk has a feedback so far.

While Tesla produces vehicles in the United States, the company also relies on imported parts, which is now subject to 25% tariff imposed by the administration. Musk has also become a policing politician due to the government’s efficiency department, which undoubtedly has possible foreign customers in every major market.

Indeed, Tesla has seen a drop in sales all over the world in the back of the political back. The first quarter deliveries decreased by 13% in three years, despite 29% growth in the broader market of electric cars. Meanwhile, the share of Tesla’s market has decreased in 9 percentage points in the United States, in 9 percentage points in Europe and 4 percentage points in China.

IVES sees this as a spontaneous crisis caused by musk policy and warns that Tesla is at risking the “permanent brand destruction”, which will change the investment thesis if the musk cannot immediately restore the company. Recently, his target price cut $ 315 per share to reflect more pessimistic prospects, although he still has a purchase rating.