Wedbush Securities analyst, Dan Ives, rings another strong alarm bell for Tesla Inc., warning that CEO Elon Musk faces his own road on the road while the electric vehicle manufacturer is preparing to publish results of the first quarter on Tuesday.
“Musk must leave the government, take a major step back on Doge and start being CEO of Tesla full time,” wrote Ives in a relationship to customers on Sunday. “Tesla is musk and musk is Tesla … And whoever thinks that the brand’s damage inflicted is not a real thing … Spend a little time talking to car buyers in the United States, Europe and Asia … You will think differently after these discussions.”
Two weeks ago, Ives reduced its price for the course for 43%action, citing a brand crisis created by the trade policies of US President Donald Trump. The biggest concern of Ives was the potential for Tesla to get caught up against Trump’s pricing policies in China, where the company generated more than a fifth of its income last year. Musk has also become the face of Trump’s efforts to reduce the size and scope of the federal government, exasperating progressive consumers who are a key clientele for the first manufacturer of American electric vehicles.
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“Tesla has unfortunately become a political symbol worldwide of the administration / Doge Trump,” wrote Ives on Sunday. He then checked several points: Tesla’s actions have been crushed since the inauguration, the delivery numbers of the company’s first quarter were terrible and the protests against Tesla continue. Tesla is faced with “permanent permanent destruction of 15% to 15% for future Tesla buyers due to the brand damage that Musk created with Doge,” said Ives.
Tesla’s shares have dropped 43% since January 17. When the company publishes profits on Tuesday, it faces questions about volume sales for 2025, progress on autonomous driving and plans for a Robotaxi network and how prices will have an impact on profitability. Besure on everything is the role of Musk in the White House.
Ives said that it was optimistic about Tesla, maintaining an outperformance note and calling it one of the “most disturbing technological companies in the world in the coming years”. However, he said Tesla needed her “most important asset” – Musk – back to the full -time business.
“We consider this as a range at the time of the road: if Musk leaves the White House, there will be permanent brand damage, but Tesla will have its most important asset and its strategic thinker as a full -time CEO,” wrote Ives. “If Musk chooses to stay with Trump’s White House, it could change the future of Tesla / Brand damage will increase.”
This story was initially presented on Fortune.com
