Tesla's Elon Musk Faces 'Moment of Truth', Says Top Wall Street Supporter

Tesla Faces Critical Moment as Elon Musk's Focus Shifts

A leading Wall Street analyst, a prominent advocate for Tesla, asserts that Elon Musk is at a crucial juncture with his electric vehicle company.

This situation stems from what the analyst characterizes as a “crisis” resulting from Musk’s substantial time commitment to the Department of Government Efficiency (DOGE).

Analyst Urges Reduced Involvement with DOGE

Dan Ives of Wedbush has publicly appealed to Musk to curtail his involvement with DOGE in a recent note.

Ives emphasizes that regardless of one’s stance on DOGE, Musk’s concentrated focus on it – to the detriment of his role as Tesla CEO since the current administration took office – has inadvertently transformed Tesla into a political entity.

He describes this as a detrimental development, labeling it a “brand tornado crisis moment” for both Musk and Tesla.

Stock Decline and Rising Protests

Ives’ concerns arise amidst a significant decline in Tesla’s stock price, currently hovering around $230.

This represents a substantial drop from its peak of approximately $480 in late December and even falls below its value prior to the recent election.

Furthermore, protests against the company are escalating globally, accompanied by a surge in vandalism targeting Tesla vehicles and retail locations.

The severity of these acts has prompted the administration to classify them as “domestic terrorism.”

Previous Optimism Gives Way to Somber Assessment

While Ives previously expressed optimism in March, suggesting Tesla was on the cusp of a major innovation cycle, his latest assessment is considerably more subdued.

Despite maintaining a bullish outlook on Tesla’s long-term prospects, Ives is now directly calling on Musk and the board of directors to address the current crisis proactively.

Calls for Action and Roadmap Clarity

Ives stops short of requesting Musk’s resignation, a step advocated by another Tesla investor, Ross Gerber.

Instead, he urges Musk to publicly commit to a more balanced allocation of his time between DOGE and Tesla.

He also seeks a more detailed roadmap for the anticipated launch of “more affordable models” and further clarification regarding the development of a robotaxi service.

Potential for Damage Control

According to Ives, taking these steps could mitigate the negative impact of Musk’s involvement with DOGE.

While acknowledging that some criticism will likely persist, he believes it can prevent “permanent brand damage” to Tesla.

He suggests that the “heat” surrounding Musk’s DOGE activities will begin to subside, leaving a lasting mark but not irreparably harming the Tesla brand.