Tesla CEO Elon Musk is facing renewed pressure to refocus on his role at the electric vehicle maker, as concerns mount over the company’s brand image, weakening demand, and investor confidence heading into a key earnings call on Tuesday.
Tech analyst Dan Ives of Wedbush, a bull investor of the company, issued a blunt assessment over the weekend, urging Musk to step away from politics and crypto distractions.
“We believe Tesla, along with Nvidia, are two of the most disruptive technology companies on the globe over the coming years,” Ives wrote Sunday. “But Musk needs to leave the government, take a step back on DOGE, and get back to being CEO of Tesla full-time.”
Ives didn’t hold back on the damage he believes has already been done. “Tesla has unfortunately become a political symbol globally of the Trump Administration/DOGE,” wrote Ives.
He noted that Tesla stock has plummeted since the U.S. presidential inauguration, first-quarter delivery numbers were weak, and protests against the company continue. The analyst warned that Tesla faces “potentially 15%-20% permanent demand destruction for future Tesla buyers due to the brand damage Musk has created with DOGE.”
Looking ahead to Tesla’s earnings on Tuesday, Ives said investors will be focused on guidance for 2025 volume, updates on autonomous driving, progress on the robotaxi network, and how tariffs might impact profitability.
But the biggest issue may be Musk’s political alignment. “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.”
Tesla’s earnings call is set for Tuesday after market close. Today, Tesla shares are down 6.8% ahead of the earnings call, trading at $224.94 per share.
