Major Tesla stock bull sounds alarm on major problem facing Elon Musk

Tesla  (TSLA)  stock closed successful the reddish connected March 28, ending a volatile week. The aboriginal momentum pursuing Elon Musk’s all-hands gathering the anterior week sparked enthusiasm among retail traders that yet proved unsustainable.

Now, the erstwhile electrical conveyance (EV) person is facing an uncertain aboriginal arsenic income diminution successful the U.S. and Europe. Despite the bump that TSLA banal received earlier successful March erstwhile U.S. President Donald Trump purchased an EV from Musk, it is wide that unfavorable marketplace conditions are weighing heavy connected Tesla's banal price.

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As TSLA banal struggles against shifting economical tides, the caller tariffs that Trump levied against the automotive manufacture rise much questions astir the company’s maturation prospects.

Even 1 of Wall Street’s astir notorious TSLA banal bulls has been little enthusiastic lately. He ended this week with a enactment highlighting an constituent that is concerning for some Tesla and Musk.

Even earlier Trump imposed caller 25% tariffs against the automotive industry, investors had been trying to find what specified policies would mean for Tesla. Now that he’s moved guardant with this caller policy, interest is rising, peculiarly regarding EVs.

Wedbush Securities expert Dan Ives has built a estimation arsenic an outspoken Tesla bull. He has a past of praising Musk and issuing bullish terms targets. Over the past fewer weeks, though, helium has issued notes with a little enthusiastic code contempt maintaining a highly bullish terms people of $550.

Related: Tesla banal mega bull gives Elon Musk an ultimatum

In his latest note, dated March 28, Ives explained wherefore helium is acrophobic astir tariffs.

The expert sees them arsenic highly problematic for the full automotive sector, including Tesla, a institution that helium seemed to person unwavering religion successful until recently.

“Even US automakers that nutrient cars successful the US person ~40%-50% of car parts that travel from abroad,” Ives states. “A US car with each US parts made successful the US is simply a fictional communicative not adjacent imaginable today. In our presumption it would instrumentality 3 years to determination 10% of the car proviso concatenation to the US and outgo hundreds of billions with overmuch complexity and disruption.”

Ives highlighted the seriousness of these predictions by adding “The victor successful our presumption from this tariff is nary one....as adjacent Tesla inactive is deed from these tariffs and volition beryllium forced to rise prices.”

Anyone who follows Ives knows that helium is acrophobic astir Tesla; it isn’t without reason.