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

Tech Crunch - Apr 7th, 2025
Open on Tech Crunch

Wedbush Securities analyst Dan Ives has reduced his price targets for Apple and Tesla, citing negative impacts from President Trump's tariffs. Apple's target was cut by $75 to $250 per share, as the company faces significant risks due to its heavy reliance on Chinese production. Apple's stock has dropped by 4.3%, trading at $180. Tesla's price target was also slashed from $550 to $315, due to both the tariff impact and CEO Elon Musk's political associations, which are causing brand challenges and affecting sales in the U.S., Europe, and China. Tesla's stock fell nearly 10% but has shown some recovery.

The tariff situation highlights significant vulnerabilities for major U.S. tech companies like Apple, which rely heavily on Chinese manufacturing. For Tesla, the situation is compounded by Musk's perceived alignment with Trump's policies, which could shift consumer preferences toward domestic competitors like BYD in China. Ives stresses the need for Musk to navigate this political landscape strategically, as Tesla's image has become intertwined with global political sentiments. These developments underscore the broader economic risks and shifts in international trade policies affecting tech and automotive industries.

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RATING

6.6
Fair Story
Consider it well-founded

The article provides a timely and relevant analysis of the impact of tariffs on major corporations like Apple and Tesla. It effectively highlights the potential economic disruptions caused by these policies, supported by insights from a credible analyst. However, the story could benefit from a more balanced presentation by including diverse perspectives and additional sources. The lack of transparency regarding the methodology and potential conflicts of interest slightly undermines its credibility. Overall, the article is clear and engaging, with the potential to influence public opinion and spark discussions on trade policies and corporate leadership.

RATING DETAILS

7
Accuracy

The story presents several factual claims that appear to be generally accurate but require verification. For example, the claim that 90% of iPhones are produced and assembled in China aligns with known facts about Apple's supply chain, though it would be prudent to verify this percentage with the latest data. The story accurately reflects the potential impact of tariffs on Apple and Tesla, mentioning specific stock price targets set by Wedbush Securities analyst Dan Ives. However, the exact figures for stock price targets and current trading prices should be cross-checked with reliable financial sources to ensure precision. Additionally, the narrative around Elon Musk's political associations affecting Tesla's brand requires further evidence to substantiate the extent of this impact globally.

6
Balance

The article focuses predominantly on the negative impacts of tariffs on Apple and Tesla, particularly highlighting the views of Dan Ives. While it provides a detailed account of the challenges faced by these companies, it lacks counterpoints or alternative perspectives. For instance, it does not explore any potential benefits or strategic responses from Apple or Tesla in light of the tariffs. The story could have been more balanced by including viewpoints from company representatives or other analysts who might have a different take on the situation. This would provide a more comprehensive understanding of the issue and mitigate any perceived bias against the current U.S. administration's policies.

8
Clarity

The article is generally clear and well-structured, with a logical flow of information. It succinctly presents the key points regarding the impact of tariffs on Apple and Tesla, making it accessible to readers with a basic understanding of financial markets. The language used is straightforward, avoiding overly technical jargon, which aids comprehension. However, the article could benefit from clearer differentiation between factual reporting and opinion, particularly in sections discussing Elon Musk's political associations and their impact on Tesla's brand.

7
Source quality

The primary source for the article is Wedbush Securities analyst Dan Ives, whose insights are credible given his professional background. However, the reliance on a single source limits the depth of the analysis. Including additional authoritative sources, such as statements from Apple or Tesla, or insights from other market analysts, would enhance the credibility and reliability of the article. The article does not cite any direct statements from the companies involved or other industry experts, which could provide a more rounded view of the situation.

5
Transparency

The article lacks transparency in terms of providing background information on how the data was obtained and the methodology behind the analysis. It does not explain how Dan Ives arrived at his conclusions regarding the impact of tariffs or the specific reasons for the stock price target reductions. Furthermore, there is no disclosure of any potential conflicts of interest that Ives or Wedbush Securities might have, which could affect the impartiality of the analysis. Greater transparency would involve clarifying these aspects to help readers understand the basis of the claims made.

Sources

  1. https://www.cnet.com/personal-finance/banking/will-trumps-newest-50-tariff-on-china-double-the-iphone-price/
  2. https://investingmoneyblog.blogspot.com/2021/03/how-does-stock-market-work.html
  3. https://fortune.com/2025/04/07/howard-lutnick-iphones-america-apple-tariffs/
  4. http://acecomments.mu.nu/?post=369658http%3A%2F%2Facecomments.mu.nu%2F%3Fpost%3D369658
  5. https://podcasts.apple.com/gb/podcast/tesla-estimates-cut-further-trump-tariffs/id326301337?i=1000702230652