Wedbush analyst Dan Ives warns that Tesla (TSLA) stocks are facing “Code Red” if CEO Elon Musk is unable to serve Tesla’s duties and US President Donald Trump. Musk faces scrutiny at the time as Tesla CEO and head of the U.S. Government Efficiency Office (DOGE). Ives warned that if Musk does not retreat from government role ahead of Tesla’s next revenue report, EV makers are facing “code red.”
“Musk must leave the government, take a big step towards Doge and return to Tesla’s full-time CEO,” said Wedbush Securities Analyst and Major Tesla Bull Dan Ives in a note on Sunday. Last month, Ives also warned that Tesla is facing a “brand crisis tornado” after Tesla’s stock price plummeted. Wedbush analysts reduced Tesla stock’s 12-month price target from $550 to $315 last week.
Ives also confirmed the company’s Robotaxis service rollout in Austin this summer, adding that Musk will need to stabilize the ship with Tesla’s revenue calls by providing details about Tesla’s low-cost vehicles and Optimus robots, and dealing with resistance over his government’s role. “We see this as a fork in road time,” Ives writes. “If Musk leaves the White House, there will be permanent brand damage…but Tesla will return its most important assets and strategic thinkers as full-time CEOs.”
Other analysts also urge Elon Musk to choose a role and stick to it, saying it could continue to hinder Tesla stocks. Dan Ives says Musk’s work at Doge has hurt demand for Tesla’s EVs, promoted protests and vandalism, citing that as the cause of Tesla’s unfortunate first quarter delivery. Tesla had a difficult few weeks. Sales in the first quarter were cut off under forecasts, and automaker stocks have also fallen 40% this year.
Tesla’s revenue calls are scheduled for April 22nd, and Wall Street is closely watching the development. First quarter revenue calls had poor results along with lower production, sales and revenue. The next revenue call can determine where TSLA stocks are going from here and perhaps Musk will spend more time on EV makers rather than government work. If things don’t change, Tesla stocks could face another sell-off and prices could plummet on the charts. If revenues are disappointing this time, TSLA is likely to fall into the $220-$200 range.
