Shares of Tesla Inc. /zigman2/quotes/203558040/composite TSLA +1.31% dropped 1.6% toward a nine-month low in premarket trading Thursday, after Wedbush analyst Dan Ives slashed his price target by 29%, citing "hard to ignore" headwinds in China, as COVID-related lockdowns have reduced demand. Ives reiterated the outperform rating he's had on the electric vehicle maker since April 2021 but cut his price target to $1,000 from $1,400. "The success of the China story on both the supply and demand side are the linchpins to our long term bull thesis in Tesla," Ives wrote in a note to clients. "That said, the reality is the current Shanghai lockdowns have been an epic disaster so far in the June quarter and we expect Tesla to see modest delivery softness this quarter with a slower growth trajectory in the key China region into the [second half of the year]." He added that the "circus show" of Tesla Chief Executive Elon Musk's bid to buy Twitter Inc. /zigman2/quotes/203180645/composite TWTR +0.76% has been a "black eye" for Tesla. "While the Twitter situation in theory does not impact the Tesla fundamental story, the distraction risks for Musk (perception is reality) are hard to ignore at a time that the Tesla ecosystem have never needed Musk more with the worst supply chain crisis seen in modern history," Ives wrote. The stock has plunged 32.8% year to date through Wednesday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.51% has declined 17.7%.