Posted on 04/08/2025 8:28:40 AM PDT by Miami Rebel
Wedbush Securities analyst Dan Ives slashed his price targets for Apple and Tesla over the weekend as President Trump’s tariffs threaten to disrupt both businesses.
“The tariff economic Armageddon unleashed by Trump is a complete disaster for Apple given its massive China production exposure,” Ives said in a warning note over the weekend. “In our view, no U.S. tech company is more negatively impacted by these tariffs than Apple with 90% of iPhones produced and assembled in China.”
Wedbush cut its price target for Apple stock by $75, down to $250 per share. Apple’s shares are down this afternoon by 4.3% and trading at $180.
Ives also cut his price target for Tesla to $315 from $550, which is still well above Tesla’s current share price of $233.94 as of 2:10 p.m. ET.
Ives said the affect of tariffs isn’t the only reason for the price cut. He also cited CEO Elon Musk’s politics, which has created a brand crisis for the automaker. Musk’s association with Trump and his tariffs policies are affecting sales in the U.S. and Europe and also threaten Tesla’s popularity in China, “further driv[ing] Chinese consumers to buy domestic such as BYD,” said Ives.
“Tesla has essentially become a political symbol globally,” he wrote. “It is time for Musk to step up, read the room, and be a leader in this time of uncertainty.
Tesla shares were down nearly 10% compared to Friday’s closing price, but have rebounded somewhat as of Monday afternoon.
Regarding Apple, he's said that to move just 10% of I-phone production to the US would cost $30 billion and 3 years. And the result would $3500 I-phones vs. $1000 ones made in China. I've been short AAPL since last Wednesday @ $206.
Apple was warned several years ago about production in China, but Tim Cook drug his feet, and now the shareholders will suffer.
“90% of iPhones produced and assembled in China”
Stuff made in China probably is not subject to Chinese import tariffs.
Apple’s biggest Chinese sales problems are Huawei and Chinese patriotism.
Are Apple’s Taiwanese chips even subject to PRC tariffs?
The PRC legally regards Taiwan as its own territory.
I doubt Tesla makes much money in China.
Almost all the hurt PRC leadership might deal out towards Tesla will be borne by the people of the PRC.
“Analyst says Apple, Tesla have biggest exposure to Trump’s tariffs”
Apple could move production to Taiwan easily.
Taiwan could cut trade imbalances and its Trump tariffs by massive purchases of US-made arms.
Is Xi prepared to be reasonable?
He is likely thinking about this incorrectly.
Tesla is morphing into a software and robotics company.
Elon will be gone from government soon.
Factories can be built quickly today using robotics and Apple can afford to do it.
[full dislosure: I am accumulating TSLA at these prices and lower.
Apple do not own.]
“Analyst says Apple, Tesla have biggest exposure to Trump’s tariffs”
This was written by me months ago:
I’m in favor of tariffs to help financially balance trade initially, then domestic production requirements, trade by barter (mainly within motor vehicle companies) and a blocked currency.
“Apple could move production to Taiwan easily.”
That would be a miraculous undertaking, and even at that it would take a thousand angels a few months.
Apple has invested a decade and countless tens of billions of dollars setting up a manufacturing ecosystem in China. It is not transferable and not fungible.
And I-phone revenues are $200 billion per year, with US customers buying over a third. Do you think Taiwan needs or can afford a defense spending budget to offset the US part of I-phone sales?
(Also, you’re presuming that Xi would just patiently sit back as Taiwan acquires one of its biggest manufacturers while arming itself to the teeth.)
We have been too trusting of China. We have helped them create the ability to threaten the world.
One can easily see on these sort of threads which FReepers are squarely in the NT camp.
Trusting? No, too many US pols & CEOs have been working hand-in-glove with China for decades...all to rake in either the favorable deals (pol bribes) or for a bit higher stock price & dividend payouts.
And Main Street be damned during the process.
Apple loves Chyna revenue from the iPhone. I doubt Xi would allow Taiwan-made iPhone to be sold in Chyna.
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