Tesla (TSLA) stock closed in the red on March 28, ending a volatile week. The early momentum following Elon Musk’s all-hands meeting the prior week sparked enthusiasm among retail traders that ultimately proved unsustainable.
Now, the former electric vehicle (EV) leader is facing an uncertain future as sales decline in the U.S. and Europe. Despite the bump that TSLA stock received earlier in March when U.S. President Donald Trump purchased an EV from Musk, it is clear that unfavorable market conditions are weighing heavily on Tesla’s stock price.
As TSLA stock struggles against shifting economic tides, the recent tariffs that Trump levied against the automotive industry raise more questions about the company’s growth prospects.
Even one of Wall Street’s most notorious TSLA stock bulls has been less enthusiastic lately. He ended this week with a note highlighting an element that is concerning for both Tesla and Musk.
U.S. President Donald Trump recently purchased a Tesla EV from Elon Musk but the company is still facing significant problems. (Photo by Andrew Harnik/Getty Images)
Andrew Harnik/Getty Images
One analyst sees dark days ahead for Tesla
Even before Trump imposed new 25% tariffs against the automotive industry, investors had been trying to determine what such policies would mean for Tesla. Now that he’s moved forward with this new policy, concern is rising, particularly regarding EVs.
Wedbush Securities analyst Dan Ives has built a reputation as an outspoken Tesla bull. He has a history of praising Musk and issuing bullish price targets. Over the past few weeks, though, he has issued notes with a less enthusiastic tone despite maintaining a highly bullish price target of $550.
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In his latest note, dated March 28, Ives explained why he is concerned about tariffs.
The analyst sees them as highly problematic for the entire automotive sector, including Tesla, a company that he seemed to have unwavering faith in until recently.
“Even US automakers that produce cars in the US have ~40%-50% of auto parts that come from abroad,” Ives states. “A US car with all US parts made in the US is a fictional tale not even possible today. In our view it would take 3 years to move 10% of the auto supply chain to the US and cost hundreds of billions with much complexity and disruption.”
Ives highlighted the seriousness of these predictions by adding “The winner in our view from this tariff is no one….as even Tesla still is hit from these tariffs and will be forced to raise prices.”
Anyone who follows Ives knows that he is concerned about Tesla; it isn’t without reason.
Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.
— Elon Musk (@elonmusk) March 27, 2025
Musk seems worried about the tariffs as well. He recently responded to an X post that broke down where cars sold in the U.S. are made, estimating the impact on various automakers from the tariffs, stating that Tesla will still be impacted.
That said, not everyone agrees that these tariffs will harm Tesla so much. TechCrunch ( describes the tariffs as a gift to Tesla, stating that it will be less impacted than many competitors as it builds every EV it sells in the U.S. at factories in California and Texas.)
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“Essentially every other automaker is in a worse position than Tesla, and the tariffs will especially affect competing EVs,” the outlet notes. It cites Ford (F) as an example since the legacy automaker builds most vehicles in the U.S. but imports several popular EVs from a facility in Mexico.
Musk did not explain how tariffs will impact Tesla the most in his post.
Are Ives and Musk correct about tariffs’ impact on Tesla?
While it is clear that Tesla is in a better position to survive the trade war than many of its rivals, that doesn’t mean it won’t be impacted if it is forced to raise prices. Despite these new apprehensions, Ives isn’t changing his Tesla price target, which implies significant upside potential.
Marcus Sturdivant Sr, Managing Member/Advisor of The ABC Squared, spoke to TheStreet about how the tariffs will likely impact Tesla and why he shares Ives’ take on the overall result.
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“Dan Ives and Wedbush are spot on in their assessment that there will be no winners in this, as this market gets worse before it eventually gets better,” he predicts. “The bumps for Tesla could see the $170s- $180s on the low end before an acceleration in the second half of the year. Their $550 price target could be a bit lofty for this year but Musk could post on X and send the stock to $400 overnight.”
Since Tesla has gone so far as to write a letter to Trump expressing concern about the tariffs, though, it is clear that the company doesn’t see them as being beneficial.
The company’s perspective seems to be that when it comes to the long-term impact of the tariffs, the bad will likely outweigh the good.
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