TECH NEWS – With dark days ahead for Elon Musk’s company, the fate of Tesla could be quite interesting, to say the least.

Tesla’s stock is down about 40% so far this year due to fierce competition from China and politically motivated boycotts in the US and EU. Even one analyst with a strong belief in Tesla may have performed the last rites, as he has nearly halved his previously sky-high price target. Wedbush analyst Dan Ives slashed his price target on Tesla by 42.7%, from $550 to $315, while maintaining his overall Outperform rating on the stock.

While Ives maintains his long-term bullish view on Tesla, he acknowledges that this is a pivotal moment of truth for Musk to turn things around, or darker days will come. According to Ives, Musk and one of Tesla’s biggest supporters over the past decade has been his workplace (Wedbush), but this is unsustainable and the Tesla brand as a political symbol is suffering by the day. He added that Musk has had his back against the wall many times and each time Tesla has come out stronger, but this may be one of the biggest challenges that needs to be turned around somehow.

$TSLA: Wedbush cuts target price to $315 from $550

“We remain bullish on Tesla, but this is a critical moment for Musk. The brand is weakening as a political symbol, and the situation is unsustainable. Musk has overcome major challenges before — this may be his toughest yet.”

— *Walter Bloomberg (@DeItaone) April 6, 2025

Musk recently alienated much of the German population by strongly supporting the far-right AfD in the recent elections, and meanwhile in the US, Musk’s activities with the DOGE (Department of Government Efficiency) continue to drive a political wedge into Tesla’s brand image. Tesla’s deliveries fell to a multi-year low in Q1 2025, with the EV giant managing to sell just 336,681 vehicles in the recently ended quarter, compared to expectations of 377,600 units. The company’s inventory rose from 77330 units at the end of Q4 2024 to 103,264 units at the end of Q1 2025, despite an extended shutdown of the EV giant’s production lines due to a rebuild ahead of the Model Y Juniper launch.

It will be difficult to turn around from here.

Source: WCCFTech