Tesla share decreased by 50 % and investors got bad news from one of the largest bulls in Wall Street

Timing (Nasdaq: tsla) The shares reached its climax at $ 480 per share in December. At that time, Donald Trump had just won the presidential elections with tremendous financial support from CEO Elon Musk, and investors were confident that the company would benefit from their relationship. But the opposite happened.

Tesla shares decreased by 50 % of their high record and the losses of its share in the market were accelerated because Musk’s participation in politics has created the company’s “brand crisis”, according to the stock analyst Dan Eve in Wedbush Securities.

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More importantly, Ivees was constantly one of the largest Tesla Bulls in Wall Street. However, he says now that the company has reached a crossroads that can mainly change the investment thesis if Musk fails to separate from politics in the near future. Here is what investors should know.

Dan Eve in Wedbush Securities had positive things to say about Tesla. Musk’s decision to support Trump in the presidential elections as a “bet on the ages” described, assuming that their relationships will benefit Tesla by eliminating the regulatory red strip with Independent driving technique And simplifying the spread of robotics.

Moreover, IVES CNBC told Tesla that it was “the most estimated market intelligence name” after the November elections. He said that stocks may reach $ 600 per share, as the company bowed to artificial intelligence products and services, such as the participation of independent horse riding and independent human robots. However, the MUSK decision to support Trump has led to adverse results so far.

While Tesla manufactures vehicles in the United States, the company also relies on imported parts that are now undergoing a 25 % tariff imposed by the Trump administration. Also, Musk has become a polarized political figure because of his involvement in the Ministry of Government efficiency, which undoubtedly isolating potential customers in every main market.

In fact, Tesla witnessed low sales around the world amid political reaction. The total delivery operations in the first quarter decreased by 13 % to its lowest level in three years despite the growth of sales by 29 % in the broader electric car market. Meanwhile, the market share in Tesla decreased 9 percentage points in the United States, 9 percentage points in Europe, and 4 percentage points in China.

IVES believes that as a self -caused crisis by Musk policy, and warns that Tesla risks “destroying the permanent brand” that would change the investment thesis if Musk fails to immediately re -focus on the company. IVES recently cut its target price to $ 315 per share to reflect a more pessimistic look, although it still has a purchase on the arrow.