Tesla CEO Elon Musk is under 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 leading up to a critical earnings call on Tuesday.
Renowned tech analyst Dan Ives of Wedbush, a bullish investor of the company, recently issued a stark assessment urging Musk to step away from politics and cryptocurrency distractions. Ives emphasized the disruptive potential of Tesla and Nvidia in the tech industry but emphasized the need for Musk to prioritize his role as CEO of Tesla.
Ives highlighted the negative impact of Tesla becoming a political symbol, particularly in relation to the Trump Administration and cryptocurrency Dogecoin (DOGE). He pointed out that Tesla’s stock has taken a hit since the U.S. presidential inauguration, first-quarter delivery numbers were disappointing, and protests against the company persist. Ives warned of potential long-term damage to Tesla’s brand, estimating a 15%-20% decrease in demand for future Tesla buyers due to Musk’s actions related to DOGE.
As Tesla prepares for its earnings call, investors are eager for insights on 2025 volume guidance, advancements in autonomous driving technology, updates on the robotaxi network, and potential impacts of tariffs on profitability. However, the most pressing issue appears to be Musk’s political affiliations. Ives stressed that Musk’s decision to either distance himself from the White House or maintain ties could significantly impact Tesla’s future trajectory and brand reputation.
The earnings call, scheduled for Tuesday after the market closes, has already caused Tesla shares to decline by 6.8%, currently trading at $224.94 per share. The outcome of the call will likely hinge on Musk’s ability to address the concerns raised by analysts and investors, particularly regarding his role within the company and potential brand damage caused by political associations.