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6d ago

Tesla Faces 'Code Red' as Analyst Urges Musk to Exit Government Role

Wedbush's Dan Ives warns of escalating brand damage and financial strain unless Elon Musk refocuses on Tesla ahead of critical Q1 earnings.

New Cybertrucks sit at a Tesla dealership on April 2, 2025, in Corte Madera, California.
US President Donald Trump listens as Tesla CEO Elon Musk speaks during a Cabinet meeting at the White House on April 10.
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Overview

  • Dan Ives of Wedbush Securities has called for Elon Musk to step down from his role at the Department of Government Efficiency (DOGE) and return as Tesla's full-time CEO.
  • Tesla's stock has dropped 36% year-to-date, with Ives describing the situation as a 'Code Red' for the automaker's future.
  • The company's share of California's EV market declined to 43.9% in Q1 2025, down from 55.5% a year ago, as Tesla registrations fell over 15%.
  • Musk's association with the Trump administration and DOGE has led to protests, vandalism, and a potential 15–20% demand loss from progressive consumers, according to Ives.
  • Tesla is set to report Q1 earnings on Tuesday, with analysts emphasizing the importance of Musk addressing the company's brand and operational challenges.