In a shocking turn of events, President Donald Trump announced sweeping global tariffs on Wednesday, April 2, 2025, that have sent shockwaves through the stock market, particularly affecting tech giants Tesla and Apple. According to Wedbush Securities analyst Dan Ives, these tariffs represent a "disaster" for both companies, leading him to drastically lower his price targets for their stocks.
The news hit Tesla (NASDAQ: TSLA) particularly hard, as shares plunged in early trading to levels that Commerce Secretary Howard Lutnick claimed they would never fall to again. Ives, known as a prominent bull on Tesla, slashed his price target by a staggering 43%, now forecasting it at $250, down from $325. He cited a "brand crisis" for the electric vehicle maker, which is led by Elon Musk, one of Trump's closest advisers. This crisis has turned Tesla into a "political symbol globally," according to Ives, adding to the turbulence surrounding the company.
Meanwhile, Apple (NASDAQ: AAPL) also faced significant downturns. After a 7.3% decline on Friday, April 4, 2025, Ives adjusted his price target for Apple to $250 from $325, reflecting a broader trend of investor anxiety. The iPhone maker's market capitalization plummeted by $443.5 billion last week, marking the largest weekly market cap decline on record for the company. In total, Apple's stock dropped 13.6% last week, its worst performance since March 30, 2020, when it fell nearly 18%.
These developments come at a precarious time for the financial sector, as JPMorgan (NYSE: JPM) and other major banks are also grappling with declining share prices. The nation's top financial institutions are set to report earnings this week, but concerns about a severe economic slowdown and decreased consumer spending loom large. The banking sector experienced its worst two-day decline since March 2020 on April 3 and 4, 2025, further exacerbating the uncertainty in the market.
In an annual letter to shareholders, CEO Jamie Dimon of JPMorgan urged a swift resolution to the tariff situation, emphasizing the urgent need for clarity in an increasingly volatile economic landscape. The interconnectedness of these events highlights the potential ripple effects of the tariffs beyond just the tech industry.
As the dust settles from the tariff announcement, analysts and investors alike are left to ponder the long-term implications for both Tesla and Apple. The tariffs, which are aimed at various sectors, could lead to increased production costs for these companies, ultimately affecting their bottom lines. Ives's assessment suggests that the impact could be felt for some time, as both companies navigate the turbulent waters of international trade and domestic politics.
In the broader context, these tariffs could also signify a shift in the U.S. trade policy under Trump, which has already seen a series of contentious negotiations with various countries. The implications of these policies are likely to resonate throughout the global economy, influencing market dynamics and investor sentiment.
As investors brace for the upcoming earnings reports from major banks and tech companies, the uncertainty surrounding the tariffs adds another layer of complexity to an already challenging economic environment. The stock market's reaction to these developments will be closely monitored, as traders seek to gauge the potential fallout from the tariffs on consumer behavior and corporate profitability.
In summary, the announcement of sweeping global tariffs by President Trump has triggered a significant decline in the stock prices of major players like Tesla and Apple. With analysts like Dan Ives adjusting their forecasts in response to this new reality, the landscape for these tech giants appears more precarious than ever. As the situation unfolds, the focus will remain on how both companies adapt to these challenges and what the future holds for the broader market.
