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Tesla bull lowers price target citing ‘brand crisis’

Tesla stock could be in trouble if Elon Musk doesn’t “step up and read the room,” according to one longtime bull.

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Credit: Tesla Asia | X

One analyst who has been a long-standing Tesla (TSLA) bull has significantly cut his price target on the company’s stock, citing recent backlash against CEO Elon Musk and U.S. President Donald Trump, though he also notes that his firm remains bullish.

In a note to clients on Sunday, Wedbush Securities analyst Dan Ives said that the firm lowered its price target on Tesla’s stock from $550 to $315, maintaining an Outperform rating. The analyst says that the 43-percent cut is the result of a “full-blown brand crisis” that was caused by Musk, and that, combined with the Trump administration’s global tariffs, the two have created the “perfect storm for Tesla.”

“Tesla has essentially become a political symbol globally….and that is a very bad thing for the future of this disruptive tech stalwart and the brand crisis tornado that has now turned into an F5 tornado,” Ives wrote. “We now estimate Tesla has lost/destroyed at least 10 percent of its future customer base globally based on self created brand issues and this could be a conservative estimate. In Europe, this number could be 20 percent or higher….all self-inflicted by Musk.”

READ MORE ON TESLA/WEDBUSH: Tesla bull Wedbush responds to Q1 deliveries: ‘A disaster on every metric’

Ives continues on that the company has “unfortunately become a political symbol because of Musk,” highlighting the global anti-Trump and Musk protests, and vandalism that many have lodged against owners of Tesla’s vehicles in recent months.

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He also acknowledged that Tesla would be “less exposed to tariffs than some” that source a higher portion of vehicle components abroad, though the tariffs are still widely expected to disrupt the company. The analyst notes that Tesla’s continued performance in China will remain “the bigger worry,” as tariff backlash could also drive consumers even further toward domestic options such as BYD, Nio, or Xpeng Motors.

Ives also called for Musk to “step up, read the room, and be a leader” during this time, noting that this year could be particularly painful for the stock if he does not “exit stage left or take a step back on DOGE in the coming month.”

also acknowledges certain upcoming bright spots for the stock, including unsupervised Full Self-Driving rolling out this summer and lower-cost models.

“Our long standing bull view of Tesla remains, but there is no denying this is a pivotal moment of truth for Musk to turn things around…or darker days are ahead,” the analyst adds. “We have been one of the biggest supporters of Musk and Tesla over the last decade….but this situation is not sustainable and the brand of Tesla is suffering by the day as a political symbol.

“Musk has been with his back against the wall many times and every time Tesla came out of it and was stronger on the other side…this may be one of his biggest challenges yet to turn around.”

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Ives has been a longtime supporter of Musk and Tesla, and he has held one of the highest price targets on the company for the past several months. In January, Ives bumped his Tesla price target from $515 to $550, along with setting a bull-case price target of $650. As for his reasoning, he noted that the company’s Full Self-Driving (FSD) rollout would likely be fast-tracked by the Trump administration, adding that the firm was confident in 2025 demand.

You can read a longer excerpt from the Sunday note from Ives below.

The bigger worry in our opinion is Tesla’s success in China as this key region is the linchpin to the future success of Tesla. The backlash from Trump tariff policies in China and Musk’s association will be hard to understate and this will further drive Chinese consumers to buy domestic such as BYD, Nio, Xpeng, and others. Tesla has essentially become a political symbol globally….and that is a very bad thing for the future of this disruptive tech stalwart and the brand crisis tornado that has now turned into an F5 tornado. We now estimate Tesla has lost/destroyed at least 10 percent of its future customer base globally based on self created brand issues and this could be a conservative estimate. In Europe, this number could be 20 percent or higher….all self-inflicted by Musk.

Tesla has unfortunately become a political symbol because of Musk and this is a very bad thing for the future of this technology stalwart. With major protests erupting globally at Tesla dealerships, Tesla cars being keyed, and a full brand crisis tornado turning into a life of its own this has cast a dark black cloud over Tesla’s stock. The future is so bright for Tesla with Austin’s unsupervised FSD, lower-cost vehicles, and of course the autonomous and robotics future….but this is a full blown crisis Tesla is navigating now (along with these tariffs), and it is time for Musk to step up, read the room, and be a leader in this time of uncertainty.

For the stock, the demand destruction for Tesla and brand damage is real and has morphed into something much more concerning over the past few months. The 1Q delivery number was a disaster as we discussed last week but this could be a brutal year ahead if Musk does not exit stage left or take a step back on DOGE in the coming month. We are taking a stab at new reduced estimates for 2025/2026 which could be a moving target with the tariffs, retaliatory, and the China wild card.

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Our long standing bull view of Tesla remains, but there is no denying this is a pivotal moment of truth for Musk to turn things around…or darker days are ahead. We have been one of the biggest supporters of Musk and Tesla over the last decade….but this situation is not sustainable and the brand of Tesla is suffering by the day as a political symbol. Musk has been with his back against the wall many times and every time Tesla came out of it and was stronger on the other side…this may be one of his biggest challenges yet to turn around.

This Tesla executive is leaving the company after over 12 years

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Elon Musk teases the capabilities of the Tesla Roadster once again

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Elon Musk has once again teased the capabilities of the Tesla Roadster, fueling the anticipation that many have for the vehicle, despite it still having no public production or delivery date.

The Roadster is among the most anticipated vehicles in the automotive sector currently, and as Tesla has teased its capabilities, from a lightning-fast 1.1-second 0-60 MPH acceleration to potential hovering with cold-gas thrusters, people are eager to see it.

Although the design seemed to be finalized, there was still more work to be done. Earlier this year, as Tesla was showcasing some of the Roadster’s capabilities to Musk, he stated that it was capable of even more.

This pushed back its production date even further, much to the chagrin of those who have been waiting years for it.

Musk continues to tease us all, and as we sit here waiting hopelessly for it to be revealed, he said today that it is “something special beyond a car.”

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Musk’s words were in response to a video posted by Tesla China, showing the Roadster in a new promotional video created by a fan.

The Roadster was planned to be released in 2020, but here we are in 2025, and there is still no sign of the vehicle entering production. However, Tesla did say earlier this year that it would host a demo event for the Roadster, where the company would showcase its capabilities.

Lars Moravy said earlier this year:

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“Roadster is definitely in development. We did talk about it last Sunday night. We are gearing up for a super cool demo. It’s going to be mind-blowing; We showed Elon some cool demos last week of the tech we’ve been working on, and he got a little excited.”

Tesla exec gives big update on Roadster, confirming recent rumor

The delays have been attributed to “radically increased design goals” for the vehicle, which have, without a doubt, improved its capabilities, but at the same time, we just want to know if it’s ever going to come.

Tesla can always make it “better,” but at what point do you say, “Okay, it’s time to show this thing off.” They could always build another, even more capable supercar in the next ten years.

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Elon Musk reiterates shocking xAI detail, and hints at an upcoming monster

He also announced that xAI’s upcoming model, Grok 5, will begin training very soon.

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MINISTÉRIO DAS COMUNICAÇÕES, CC BY 2.0 , via Wikimedia Commons

Elon Musk has reiterated a rather shocking tidbit about xAI’s impressive scores at the ARC-AGI benchmark.

He also announced that xAI’s upcoming model, Grok 5, will begin training very soon.

xAI results on the ARC-AGI benchmark

In a recent post on social media platform X, Greg Kamradt, President of the ARC Prize Foundation, noted that Grok 4 has been used in two SOTA submissions to the ARC-AGI V1 and V2 benchmarks. The submissions, which were the best that the foundation has encountered to date, were done using xAI’s large language model, Grok 4. 

As per Kamradt, when asked about why the submissions were done using Grok 4, the authors stated that “It was the best model I used in testing.” Musk was evidently proud of this accomplishment, though he also highlighted that these accomplishments were attained with just Grok 4. This suggests that once Grok 5 is in the picture, xAI’s lead in the AI sector could become notable.

Grok 5 incoming

Elon Musk has shared a number of tidbits about Grok 5 as of late. In recent comments on X, the Tesla and SpaceX CEO stated that he believes Grok 5 has the potential to actually reach artificial general intelligence (AGI). This suggests that Grok 5 would be nothing short of a monster, as it could be capable of matching or surpassing human-level intelligence across tasks such as thinking, reasoning, and other domains by a substantial margin.

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Grok 5 may also be coming soon. As per Musk in another post on X, xAI will be starting the training of Grok 5 in a few weeks. Musk definitely seems to be highly optimistic about the capabilities of Grok 5, with the CEO stating late last month that the update would be coming before the end of the year and that it will be “crushingly good.”

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SpaceX is partnering with chipmakers to enable Starlink satellite-to-cell service

President Gwynne Shotwell outlined the effort during a space industry conference in Paris.

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Credit: SpaceX/X

SpaceX is working with microchip manufacturers to integrate satellite-connectivity hardware into smartphones, advancing its plan for direct-to-device services through Starlink. 

The move follows the company’s $17 billion acquisition of wireless spectrum from EchoStar Corp., a deal that positions SpaceX to operate more independently of traditional telecom carriers. 

President Gwynne Shotwell outlined the effort during a space industry conference in Paris this week, as noted in a Bloomberg News report.

Starlink direct-to-device

Starlink currently serves millions of customers in over 100 countries, primarily through ground-based dishes. The company, however, is now expanding into satellite-to-cell service, which should enable unmodified phones to connect directly with orbiting satellites. While SpaceX has a partnership with T-Mobile US, the EchoStar spectrum purchase gives it more control to negotiate with global carriers on its own terms.

“We’re working with chip manufacturers to get the proper chips in phones,” the SpaceX President stated. “We will now be initiating discussions with telcos in a different way now. Now it’s our spectrum, but we want to work with them, almost providing capacity and wholesaling capacity to their customers.”

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The company plans to launch satellites capable of supporting its direct-to-device business within two years, with early mobile phone testing expected by late 2026.

Starship program continues test flights

Shotwell also addressed SpaceX’s Starship program, which recently completed its 10th test flight in August. She said the mission met all objectives, providing a critical morale boost to teams after a challenging development year. 

“My Starship team needed that win,” Shotwell noted. “Development programs always are kind of a 24/7 operation, and I was really pleased for them.”

SpaceX is planning to fly one more iteration of the current Starship prototype, known as V2, before transitioning to the next-generation V3 vehicle. That version, expected to debut late this year or early 2026, is designed to be more capable and support eventual crewed missions to the Moon and Mars. 

“The V3, which we want to fly hopefully late this year, but maybe early next year, is really the vehicle that could take humans to the moon and Mars,” Shotwell stated.

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