Dan Ives Calls Out 'Elephant In The Room' Amid Tesla Selloff, Addresses Elon Musk's Trump Ties As Wedbush Reiterates $550 Target

Wedbush Securities analyst Dan Ives added Tesla Inc. (NASDAQ:TSLA) to the firm’s Best Ideas List on Thursday, reiterating an “Outperform” rating and $550 price target despite growing challenges facing the electric vehicle maker.

What Happened: “This is a gut check moment for Tesla bulls after this massive sell-off,” Ives posted on X, calling the current situation a critical juncture where negative sentiment has overshadowed Tesla’s potential as “a unique disruptive global tech story.”

Ives addressed the “elephant in the room” – CEO Elon Musk‘s involvement with the Department of Government Efficiency and his close relationship with President Donald Trump. He estimates “less than 5% of Tesla sales globally are at risk” despite widespread brand concerns.

We are adding Tesla to the Wedbush Best Ideas List and reiterate our OUTPERFORM rating and $550 price target. 👇🐂 pic.twitter.com/O0wdGcZfNW

— Dan Ives (@DivesTech) March 7, 2025

Tesla shares have fallen 30.54% year-to-date, closing at $263.45 on Thursday, significantly below the average analyst price target of $329.26.

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Why It Matters: These concerns have manifested in protests at Tesla showrooms and charging stations across the U.S., with demonstrators opposing Musk’s role in reducing the federal workforce. Recent incidents include vandalism of Tesla vehicles in Brookline, Massachusetts, and arson at a Littleton supercharger station.

The company’s brand value dropped 26% to $43 billion in 2025 rankings, according to Brand Finance, with Tesla falling from 18th to 36th place globally.

Additionally, potential Trump tariffs on Canada and Mexico could impact Tesla, which sources 20-25% of parts for various models from Mexico, according to the U.S. Department of Transportation, National Highway Traffic Safety Administration.

Despite these challenges, Ives remains bullish on Tesla’s future, pointing to upcoming innovations including a sub-$35,000 model and the launch of unsupervised Full Self-Driving in Austin this June. Ives values Tesla’s autonomous technology potential at $1 trillion alone.

“We believe autonomous and Optimus will represent 90% of Tesla’s valuation,” Ives concluded.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.