Tesla’s Major Bull Reduces Target Price Significantly
43 minutes ago
Tesla’s stock (TSLA) witnessed a decline on Monday, continuing the selloff triggered by the recent tariffs imposed by the Trump administration. Analysts from Wedbush, led by bullish Dan Ives, have lowered their price target for Tesla shares from $550 to $315.
The ongoing tariff uncertainty has been described as a “double whammy” for Tesla, negatively impacting the company’s production costs and profit margins. Furthermore, it has intensified negative perceptions surrounding CEO Elon Musk and the Tesla brand, potentially leading to decreased sales.
The analysts noted, “Tesla has essentially become a political symbol globally… and this is detrimental to the brand’s future amidst ongoing crises.” They estimate that the company has potentially lost at least 10% of its future customer base due to self-inflicted brand issues.
There are concerns about the implications in China, as Musk’s ties to Trump’s administration might motivate Chinese consumers to purchase more electric vehicles from domestic manufacturers like BYD.
The analysts emphasized that Musk needs to be a decisive leader during this uncertain period. Their long-term bullish stance on Tesla remains unchanged, but they warned, “This is a critical moment for Musk; he must act to avert further challenges.”
Tesla shares have fallen 4% recently and are down nearly 43% this year.
Key Trump Supporter Questions Tariff Strategy
1 hr 57 min ago
Bill Ackman, the billionaire CEO of Pershing Square and a prominent supporter of President Donald Trump, has expressed skepticism regarding the president’s new tariff strategy.
Ackman criticized the “large and disproportionate tariffs” on vital U.S. trade partners and called on Trump to consider a “90-day pause” for negotiations. He cautioned that losing the confidence of global business leaders could have severe consequences for the nation, particularly for low-income consumers already facing economic pressure.
By imposing reciprocal tariffs, including 20% on EU imports and higher rates on goods from Vietnam and Japan, Ackman warned of causing “economic nuclear war” with global partners, which could harm U.S. investments and damage its standing internationally.
In a subsequent statement, Ackman voiced concerns over the role of Trump’s advisors in shaping the tariff policy, suggesting their motives may be contrary to the interests of the country.
National Economic Council Director Kevin Hassett criticized Ackman’s rhetoric, urging a reduction in the alarmist tone. Ackman then tempered his earlier comments, stating that his frustrations stemmed from what he views as a significant policy error impacting the country’s economic progress.
Goldman Sachs Lowers GDP Forecasts, Raises Recession Risks
2 hr 45 min ago
Goldman Sachs analysts reported on Sunday that they have downgraded their 2025 gross domestic product (GDP) growth predictions as they heighten concerns over a potential recession, attributing the changes to the tariffs implemented by the Trump administration.
The likelihood of a recession within the next year has now increased to 45%, up from the previous 35%, attributed to tightening financial conditions, consumer boycotts, and policy uncertainty that could hinder capital investment.
If the effective tariff rate rises significantly, the analysts suggested that the recession risk could exceed 50%. Consequently, they have lowered GDP growth estimates to 0.5% for Q4 and 1.3% for 2025.
They expect the Federal Reserve to begin a series of interest rate cuts sooner than anticipated, with three consecutive quarter-point cuts likely starting in June.
Major stock indexes have dropped substantially in response to the tariff-induced selloff, which marked one of the worst weeks for the market in recent years.
Wall Street Banks Adjust S&P 500 Projections
3 hr 45 min ago
In light of heightened economic uncertainty, banks are revising their forecasts for U.S. stocks, particularly for the S&P 500 index, which could see a decline of 7-8% from its last closing value of 5,074.08.
Analysts from Morgan Stanley have expressed concerns that the index could fall to 4,700 if the tariffs proceed as planned, and this has prompted them to consider setting technical support levels lower than previously indicated.
Oppenheimer analysts have also sliced their S&P 500 target from 7,100 down to 5,950, stating that the market appears oversold amid widespread investor uncertainty.
Comments from the Federal Reserve regarding the potential for inflation and slower economic growth as a result of the tariffs have added to market concerns, as officials have decided to maintain current interest rates.
Bitcoin Prices Fall Below Key Threshold
4 hr 31 min ago
The price of Bitcoin (BTCUSD) has dropped below the crucial $80,000 mark, as investor concerns about tariffs escalate.
Bitcoin recently traded at $77,400, marking a significant drop from around $84,000 and the lowest price point since November, reflecting a broader trend of investors avoiding high-risk assets.
Having recently broken below the 200-day moving average, Bitcoin’s price trajectory has shifted into a downtrend, with significant resistance observed at the $87,000 mark.
Investors are advised to monitor critical support levels located at $74,000, $65,000, and $57,000 as the market conditions evolve.
Futures Indicate Major Indexes Set for Sharp Declines
5 hr 12 min ago
Futures for the Dow Jones Industrial Average are currently down 2.2%, while the S&P 500 futures are off by 2.4%. The Nasdaq 100 futures have experienced a more significant decline of 2.7%.
This market downturn reflects the ongoing consequences of tariff policies and investor anxiety regarding the economic landscape.
