Wedbush Securities analyst Dan Ives recently lowered his price targets for both Apple and Tesla due to the impact of President Trump’s tariffs on their businesses. According to Ives, Apple is facing a major crisis as 90% of its iPhones are produced and assembled in China, making it highly vulnerable to the tariffs.

For Apple, Wedbush reduced the price target for its stock by $75 to $250 per share. As a result, Apple’s shares fell by 4.3% this afternoon, trading at $180. Meanwhile, Tesla saw its price target cut from $550 to $315 by Ives, although it still remains well above its current share price of $233.94.

Ives highlighted that besides the tariffs, Tesla is also struggling due to CEO Elon Musk’s political affiliations, which have negatively impacted the company’s brand image. Musk’s ties to Trump and his tariff policies have affected sales in the U.S. and Europe, as well as Tesla’s popularity in China. As a result, Chinese consumers are turning to domestic brands like BYD instead of Tesla.

Overall, Tesla’s shares declined by nearly 10% compared to Friday’s closing price, but have since recovered slightly by Monday afternoon. Ives emphasized the need for Musk to address these challenges and become a more proactive leader during this period of uncertainty.