Wedbush analyst Dan Ives warns Tesla (NASDAQ:TSLA) is facing a “code red situation”, driven by CEO Elon Musk’s political entanglements and Dogecoin (DOGE) promotion. With Tesla at a major crossroads, Ives urges Musk to step back from politics and refocus on core operations ahead of next week’s critical earnings report.
Brand Fallout and Demand Destruction
Political Symbol
Musk’s alignment with the Trump Administration and vocal DOGE support have transformed Tesla into a “political symbol globally.”
Consumer Backlash
Protests at dealerships and social media campaigns have emerged.
Ives estimates 15–20% permanent demand destruction among future Tesla buyers due to brand damage.
Delivery and Financial Headwinds
Q1 Deliveries
Tesla reported weaker?than?expected first?quarter deliveries.
Street forecasts for 2025 deliveries have fallen from 2 million to ~1.65 million.
Earnings Projections
Wedbush sees EPS converging around $2 for 2025, with further downside possible.
The Road to Recovery
Refocus on Core Business
Ives insists Musk must step away from political roles, dial back DOGE promotion, and dedicate himself fully to Tesla’s operations.
Earnings Call Watch
Investors will seek clarity on:
Full Self?Driving timelines
Lower?cost vehicle rollout
AI and robotics roadmap
Track Analyst Targets for Tesla
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