A top analyst has slashed price forecasts for Apple and Tesla, blaming new US taxes on Chinese imports and Elon Musk’s controversial political ties.

Wedbush Securities’ Dan Ives called President Trump’s planned tariffs a “economic Armageddon” a disaster for Apple, as 90% of iPhones are made in China. He cut Apple’s targeted share price with the difference of $75 from $325 to $ 250. Apple stock fell 4.3% to $180 on Monday.

Tesla wasn’t spared either. Ives lowered its target from $550 to $315—still higher than its current $233.94 price. 

Ives said tariffs aren’t the only issue. He mentioned Tesla’s falling value partly on CEO Elon Musk’s political ties, which are damaging the brand. Musk’s links to Trump and his tax policies have affected sales in the US and Europe, Ives also mentioned “further driving Chinese consumers to buy domestic such as BYD,”

“Tesla is now seen as a political brand worldwide,” Ives added. He urged Musk to “understand public mood” and “lead confidently” during turbulent times.

While Tesla shares dropped 10% early Monday, they later recovered slightly.

The double blow highlights how Trump’s trade wars and Musk’s polarising stance are squeezing two of America’s biggest tech firms. For Apple, shifting production from China remains a costly hurdle. For Tesla, rebuilding trust may be the bigger challenge.