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Apple (AAPL, Financials) and Tesla (TSLA, Financials) are under growing pressure from new U.S. tariffs, prompting Wedbush Securities to lower its price targets for both, citing supply chain risks and brand fallout.
Citing the computer behemoth's great dependence on Chinese manufacture, Wedbush Securities cut its price objective for Apple by $75 to $250 per share. Trading at $180, Apple shares fell 4.3% on Monday.Dan Ives, managing director at Wedbush, termed the additional levies "a complete disaster" for Apple. Ives said the corporation is more susceptible than any other U.S. tech business given that 90% of iPhones are manufactured and assembled in China.Tesla suffered as well. Citing not just the tariff effect but also the political baggage held by CEO Elon Musk, Wedbush cut its price objective from $550 to $315. Ives said that Musk's connection to President Donald J. Trump is making Tesla a political target, damaging its reputation in important countries like the United States, Europe, and China.Before recovering to $233.94 by early Monday afternoon, Tesla shares fell about 10% from Friday's closing. Ives cautioned that the political clamor is providing Chinese customers more justification to go to domestic electric car manufacturers like BYD.Tesla has essentially become a political symbol globally, Ives wrote, urging Musk to read the room and show leadership during uncertain times.Rising tensions between Washington and Beijing highlight the dual downgrade's larger implications for American businesses closely linked to Chinese operations.
This article first appeared on GuruFocus.