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Tesla Faces Investor Alarm as Musk's Political Role Overshadows Q1 Earnings

Analyst Dan Ives warns of 'code red' consequences for Tesla unless Elon Musk steps back from his government role and refocuses on the company.

New Cybertrucks sit at a Tesla dealership on April 2, 2025, in Corte Madera, California.
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Elon Musk looks on during a Cabinet Meeting in the Cabinet Room of the White House March 24, 2025 in Washington, DC.
US President Donald Trump listens as Tesla CEO Elon Musk speaks during a Cabinet meeting at the White House on April 10.

Overview

  • Tesla's stock has dropped 36-45% year-to-date, with first-quarter sales and market share significantly declining, including a 15% dip in California EV registrations.
  • Wedbush analyst Dan Ives has issued a stark warning, calling for Elon Musk to leave his role at the Department of Government Efficiency (DOGE) to prevent further brand damage and permanent demand loss.
  • Tesla has faced global protests, vandalism, and consumer backlash due to Musk's association with the Trump administration, which has politicized the brand.
  • The company is grappling with challenges such as trade war tariffs, delayed product timelines, and intensifying competition in key markets like China and Europe.
  • Investors await Tesla's Q1 earnings call today, where Musk is expected to address concerns about leadership focus, robotaxi progress, and strategies to reverse declining sales and stock performance.