Dan Ives, a renowned analyst at investment bank Wedbush Securities, cut his price target on Tesla (TSLA) today to $315 from $550, Schwab Network reported. However, Ives did keep an Outperform rating on the name.

Why Ives Sharply Lowered His Price Target

President Donald Trump's tariffs, which Ives called "economic...Armageddon," will create "a double whammy" for TSLA, the analyst warned. In addition to lowering Tesla's profits in America, the duties will create major problems for the automaker in China, he believes.

In fact, Ives is more concerned about the impact of the duties on the company's business in China, as the Asian country "is the linchpin to the future success of Tesla," he wrote.

"The backlash from Trump tariff policies in China and Musk's association will be hard to understate," Ives contended.

Further, Ives believes that the firm's "self-created brand issues" have caused it to shed "at least 10% of its future customer base globally," Schwab reported. Ives added that "this could be a conservative estimate."

The Recent Price Action of TSLA Stock

In the last month, the shares have gained 8%, but they have tumbled 42% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.