Tesla (TSLA, Financial) is back in the political crosshairs—and this time, it's not walking away unscathed. Elon Musk made personal appeals to President Trump and publicly championed free trade on X, but none of it was enough to stop the administration from escalating tariffs on Chinese imports. Trump is now floating a 50% tariff hike, stacking it on top of the 34% already announced. Behind the scenes, Musk's team lobbied hard. On social media, he posted videos of Milton Friedman. But the message didn't land. The White House isn't backing down.
What's more telling is the reaction inside Trump's own donor class. Key business allies—many of whom backed Trump's campaign—are privately alarmed and organizing informal lobbying efforts. Venture investor Joe Lonsdale confirmed he'd warned officials the tariffs would hurt American companies more than Chinese ones. Commerce Secretary Howard Lutnick and trade adviser Peter Navarro remain firm on protectionism, leaving Tesla and the broader tech sector increasingly isolated in this new economic playbook.
Analyst Dan Ives at Wedbush just cut his Tesla price target from $550 to $315, citing a demand reset in China and rising brand risk tied to Musk's political entanglements. His warning? Tesla's no longer just a car company—it's now a global symbol of geopolitical tension. What was once a story about tariffs has evolved into something bigger: a test of whether Tesla can navigate a storm it helped stir up, or whether it's about to get swept under by it.