WASHINGTON: Wedbush Securities analyst Dan Ives is sounding another loud alarm bell for Tesla Inc, warning that Elon Musk faces his own fork in the road as the electric vehicle maker prepares to report first quarter earnings today.
“Musk needs to leave the government, take a major step back on the Department of Government Efficiency (DOGE), and get back to being CEO of Tesla full-time,” wrote Ives in a report to clients Sunday.
“Tesla is Musk and Musk is Tesla...and anyone that thinks the brand damage Musk has inflicted is not a real thing...spend some time speaking to car buyers in the United States, Europe and Asia...you will think differently after those discussions.”
Two weeks ago, Ives slashed his price target for the stock by 43%, citing a brand crisis created by Musk and US President Donald Trump’s trade policies.
Ives’ biggest concern has been the potential for Tesla to get caught up in the backlash against Trump’s tariff policies in China, where the company generated more than a fifth of its revenue last year.
Musk has also become the face of Trump’s efforts to slash the size and scope of the federal government, infuriating progressive consumers who are a key client base for the leading American electric vehicle maker.
Tesla has unfortunately become a political symbol globally of the Trump administration/DOGE, according to Ives on Sunday.
He then ticked off several points: Tesla’s stock has been crushed since inauguration, the company’s first quarter delivery numbers were terrible, and protests against Tesla continued. — Bloomberg
