Influential Wedbush Securities analyst Dan Ives, a long-time Tesla bull, warns that the EV maker is facing a critical juncture as CEO Elon Musk’s role in the government causes controversy in his hardcore leftist customer base. According to Ives, Tesla needs Musk to step away from DOGE and be a “full-time” CEO during its “code red” moment.
According to Bloomberg, in a report to clients on Easter Sunday, Dan Ives, a prominent Tesla bull and analyst at Wedbush Securities, urged Elon Musk to step back from his work at the Department of Government Efficiency (DOGE) and refocus his attention on Tesla as the company prepares to report its first-quarter earnings on Tuesday. Ives stressed that Tesla is at a “code red” moment, and Musk’s involvement with the government has caused significant brand damage.
“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Ives wrote. “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 US, Europe, and Asia. You will think differently after those discussions.”
Ives slashed his price target for Tesla’s stock by 43 percent two weeks ago, citing the brand crisis created by Musk as well as Donald Trump’s trade war with China. His primary concern is the potential for Tesla to become entangled in the backlash against Trump’s tariff policies in China, a market that accounted for more than a fifth of the company’s revenue last year. Additionally, Musk has become the face of Trump’s efforts to reduce the size and scope of the federal government, angering leftist consumers who form a key client base for the leading American electric vehicle manufacturer.
Since January 17, Tesla shares have fallen by 43 percent. As the company prepares to report earnings on Tuesday, it will face questions about volume sales for 2025, progress on autonomous driving and plans for a robotaxi network, and the impact of tariffs on profitability. However, Musk’s role in the White House looms over everything.
Musk, the world’s richest person, is a special government employee, a classification for temporary federal hires who are only supposed to work 130 days out of the year in their roles. People familiar with the matter said earlier this month that Musk is expected to step back from his role once his 130-day period has lapsed.
Despite the challenges, Ives remains bullish on Tesla, maintaining an outperform rating and calling it one of the “most disruptive technology companies on the globe over the coming years.” However, he emphasized that Tesla needs Musk, its “most important asset,” back at the company full time.
“We view this as a fork in the road time: if Musk leaves the White House there will be permanent brand damage, but Tesla will have its most important asset and strategic thinker back as full time CEO,” wrote Ives. “If Musk chooses to stay with the Trump White House, it could change the future of Tesla/brand damage will grow.”
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
