Overview

• Wedbush analyst Dan Ives warns Tesla faces a critical 'code red' moment unless Elon Musk steps down from his government role at the Department of Government Efficiency (DOGE).
• Tesla's stock has dropped roughly 36% year-to-date, with a 15% decline in Q1 EV registrations as the broader EV market grew by 35%.
• Protests and violent incidents, including Molotov cocktail attacks, have targeted Tesla facilities, reflecting backlash over Musk's political alignment with the Trump administration.
• Analysts cite significant brand damage, with Tesla becoming a political symbol, potentially causing 15%-20% permanent demand loss among consumers.
• As Tesla prepares for its Q1 earnings call, analysts emphasize the need for Musk to refocus on Tesla's leadership to stabilize the company's trajectory.