Tesla (TSLA -0.13%) stock peaked at $480 in December but has since fallen 50%, as CEO Elon Musk’s political involvement has led to a “brand crisis,” according to analyst Dan Ives at Wedbush Securities. Despite previously optimistic projections for Tesla, Ives warns that Musk’s actions risk “permanent brand destruction,” prompting a cut in the target price to $315 per share. While Wall Street has lowered earnings estimates, Tesla’s upcoming ventures into robotaxis and robotics present significant growth opportunities, albeit with execution risks.
