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Analyst says Apple, Tesla have biggest exposure to Trump’s tariffs

Wedbush analyst Dan Ives warns that tariffs imposed by President Trump are significantly impacting Apple and Tesla. Apple, reliant on China for 90% of iPhone production, faces severe threats and has its stock price target reduced to $250. Tesla's target was lowered to $315 due to the tariffs and CEO Elon Musk's political ties, impacting brand perception and sales in key markets, including China.

Key points

  • Ives slashes Apple's price target from a previous level to $250, down by $75.
  • Apple's reliance on Chinese manufacturing (90% of iPhones produced in China) makes it vulnerable.
  • Apple shares fell by 4.3% to $180 at the time of the report.
  • Tesla's price target reduced to $315 from $550, yet still above the current share price of $233.94.
  • Ives links the tariff impact to a broader brand crisis at Tesla related to CEO Elon Musk's political affiliations.
  • Tariffs are expected to negatively affect Tesla's sales in the U.S. and Europe, while also allowing competitors like BYD in China to gain market share.
  • Tesla shares experienced a decline of nearly 10% but rebounded slightly by Monday afternoon.

Why it matters

  • The trade tensions and tariffs were a significant part of the U.S.-China relationship, impacting various sectors.
  • In 2025, tech companies are still grappling with global supply chain disruptions due to previous trade conflicts.
  • Political affiliations of CEOs have increasingly influenced consumer perceptions and stock performance in recent years.
  • Consumer behavior shifts towards domestic products (like BYD in China) in response to trade tensions, a trend expected to continue.

The report underscores the resilience challenges faced by major tech companies due to political and economic factors, particularly as Trump-era tariffs continue to affect market dynamics and corporate strategies.