Wedbush Securities analyst Daniel Ives has expressed optimism about Tesla’s future following Elon Musk’s announcement to reduce his involvement with the DOGE team. In the wake of the company’s latest earnings call, Ives, a long-time supporter of TSLA, has raised Tesla’s price target from $315 to $350, endorsing a BUY rating.
The recent earnings call was deemed a crucial moment for Musk to steer Tesla away from a challenging period marked by disappointing first-quarter numbers. Tesla had faced a quarter marred by soft deliveries and falling short of expectations on various metrics. Ives viewed this as an opportunity for Musk to refocus on his role as CEO of Tesla, distancing himself from the association with DOGE and the Trump Administration. Following the earnings call, Ives remarked that it was a turning point in the Tesla narrative.
Prior to the Q1 2025 earnings call, Ives had highlighted six factors that he believed Tesla needed to address in order to navigate a pivotal juncture. At the top of his list was Tesla’s image as a global political symbol linked to the Trump Administration and DOGE. It’s worth noting that these views are specific to Ives and may not reflect the wider public perception, as some groups view Musk and Tesla separately from President Trump and his administration.
During the earnings call, Musk made it clear that he would be reducing his involvement with DOGE significantly, starting in May. He emphasized that his focus would shift back to Tesla, as he had completed the major work related to the Department of Government Efficiency. Additionally, Musk expressed his stance on Trump’s auto tariffs, underscoring his independence from the President and his administration. While advocating for lower tariffs for economic prosperity, Musk reiterated that the final decision rested with the elected representative of the people, namely the President of the United States.
In conclusion, Ives’ positive outlook on Tesla’s future, coupled with Musk’s renewed focus on the company and his distancing from external political associations, bodes well for Tesla’s trajectory moving forward. This strategic shift could potentially enhance Tesla’s position in the market and reinforce its standing as a leading innovator in the automotive industry.