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To make his case, Wright cited the 2014-2016 period, when crude oil prices fell below $30 a barrel. The shale industry got smarter and innovated to bring their costs down, he said.
Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) fell 10.7% in the afternoon session after Wall Street sentiment toward the company turned more bearish, with several analysts cutting their forecasts and price targets. UBS analyst Joseph Spak issued the most bearish outlook, slashing his price target to $19, implying a potential 30% downside. Spak warned that while lower 2025 earnings expectations were becoming consensus, the broader earnings trajectory for Tesla still appeared overly optimistic and remained vulnerable to further downward revisions after Q1 2025 earnings are released.
Similarly, Goldman Sachs lowered its price target from $275 to $260, reflecting growing near-term risks. The firm pointed to weakening auto demand, softer consumer sentiment, rising tariff-related costs, particularly within Tesla's Energy division, and increasing uncertainty around U.S. EV policy. Despite these headwinds, Goldman highlighted that the long-term potential from Tesla's AI-driven initiatives could serve as a meaningful offset, providing an avenue for future growth beyond its traditional automotive business.
Separately, stocks gave back some of the gains from the previous day as the White House clarified the tariffs on imports from China would add up to 145%, while the baseline 10% tariffs remained in place for all countries. This reminded investors that the global trade environment remained volatile, limiting the potential for sustained market gains.
Also President Trump said he was willing to accept pain in the short term, and was aware his policies could cause a recession, but he remained more mindful of a more severe case of economic depression (higher unemployment and prolonged downturn).
For investors, this suggested that the administration could prioritize long-term structural shifts over near-term economic stability, further increasing policy-driven risk in the markets.
Shares of automotive manufacturer Ford (NYSE:F)
fell 5.8% in the afternoon session after Goldman Sachs downgraded the stock, citing growing concerns over trade tariffs on imported vehicles and car parts, which are expected to pressure profit margins and disrupt supply chains across the industry. The firm added, "We downgrade Ford to Neutral from Buy to better reflect a more difficult cyclical dynamic including competition internationally, weaker consumer demand, and what we expect will be higher costs from tariffs.".
The firm expects the net price of new vehicles in the U.S. to rise by about $2,000 to $4,000 over the next 6-12 months as car manufacturers pass on tariff-related costs, Reuters reported.
The new trade policies, UBS said, are raising the cost of making a vehicle, subsequently raising the cost of a vehicle for consumers and negatively impacting demand.
