The future of Tesla (TSLA) is still hanging in the balance as investors and analysts continue to sound the alarm on Elon Musk’s leadership.
Since the start of 2025, the electric vehicle (EV) producer has battled a number of factors, pushing shares down 36% year-to-date (YTD). Given how well it had performed during the final months of 2024, the contrast is difficult to ignore.
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Now the company is gearing up to report earnings, and many experts are expressing concern. They have reason to scale back their expectations, as Tesla recently reported extremely disappointing delivery numbers, demonstrating just how much consumer sentiment toward the brand is suffering.
Many of Tesla’s problems have been attributed to Musk, specifically to his decision to focus more on his responsibilities on Capitol Hill than on his company. One analyst believes that he must take action immediately before time runs out.
A Wall Street analyst who has repeatedly praised Elon Musk is sounding the alarm on his leadership.
Image source: J. Emilio Flores/Corbis via Getty
A longtime Tesla bull believes Musk needs to act fast
For months, Wall Street sentiment toward Tesla has suffered as analysts have soured on Musk and scaled back their price targets. But through it all, one expert maintained that the CEO could prevail and help lead Tesla back to its previous levels.
Daniel Ives of Wedbush Securities garnered a reputation as one of the industry’s most notorious TSLA stock bulls. Even as shares declined throughout 2025, he refused to lower his $550 price target until recently, citing concerns about Musk and highlighting the need for him to refocus on Tesla.
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On April 20, Ives published another note to investors, issuing an ominous warning regarding Tesla’s future. In it, he stated that Musk will end up facing a “code red” situation unless he makes a major decision that he may not want to.
As noted, Ives has continuously argued that Musk’s work with the so-called Department of Government Efficiency (DOGE) has compromised TSLA stock, and it is therefore in the company’s best interest for him to abandon this position.
In this note, Ives and his team present themselves as being at a “major crossroads” regarding Tesla. While they list several reasons for this, the bulk of their argument centers around the severe damage Musk’s political affiliations have done to the company’s brand.
“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” the note argues. “Tesla is Musk and Musk is Tesla….and anyone that thinks the brand damage Musk has inflicted is not a real thing….spend some time speaking to car buyers in the US, Europe, and Asia…you will think differently after those discussions.”
The argument that European sentiment toward Tesla is significantly impacting the company is not unique to Ives. David Materazzi, founder and CEO of Galileo FX, spoke to TheStreet about that exact topic.
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“People aren’t just selling their cars here… they’re making a statement. That’s a brand in free fall,” he stated, referring to Europe. Materazzi added that he believed other nations would follow the example set by countries such as Germany and Italy, in which consumers have taken a stand against Musk.
Tesla’s problems may get worse unless Musk takes action
Ives’s highly critical stance Tesla is light in comparison to those of other financial experts. Tesla shareholder Ross Gerber has called for Musk to step down as CEO, arguing that the damage he has done can only be healed if the company’s leadership changes dramatically.
Related: Elon Musk makes controversial decision that could cost Tesla big time
While Trump recently stated that Musk would likely be leaving his position at DOGE within a few months, few details have been provided since then. As such, Musk’s future still seems largely uncertain, and by default, so does Tesla’s, something that Wall Street doesn’t like.
In the note, Ives and his team highlight the time pressure that Musk is facing with regard to returning to Tesla. As they state:
“If Musk leaves the White House there will be permanent brand damage…but Tesla will have its most important asset and strategic thinker back as full time CEO to drive the vision and the long term story will not be altered. IF Musk chooses to stay with the Trump White House it could change the future of Tesla/brand damage will grow.”
With Tesla poised to report earnings on Tuesday, April 22, many investors are watching keenly for updates on Tesla’s quarterly progress. But they are likely also hoping to learn about Musk’s immediate plans and if he will be leaving DOGE in the near future.
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