Tesla's Big Test: Can Musk Steer the Company Back on Track?

One of Tesla's biggest fans on Wall Street thinks it's time for Elon Musk to change how he talks about his electric car company. With Tesla getting ready to share its earnings after the bell on Tuesday, Wedbush Securities analyst Dan Ives thinks Musk needs to use this moment to turn things around. The company has had a tough year, with sales dropping and its stock price falling. Tesla has faced many challenges this year. It has become a political symbol, which has hurt its brand. There have been protests and even violence at some of its dealerships. New tariffs have also made things harder. Ives thinks Tesla is at a big turning point. So, why does Ives still believe in Tesla? He thinks Tesla and Nvidia are two of the most innovative tech companies in the world. He believes their innovations in engineering, self-driving cars, and robotics could lead to big gains in the future. But Ives also thinks Musk needs to step back from his role in the Trump administration. He leads the Department of Government Efficiency, or DOGE. Ives warns that if Musk stays in this role, it could be a "Code Red Situation" for Tesla. He thinks Musk needs to focus on being the full-time CEO of Tesla.

Ives believes that if Musk leaves his government role, Tesla will get its most important leader back. This could help drive the company's vision forward. But if Musk stays in the government, it could lead to more damage to Tesla's brand. Tesla is no longer the top seller of electric cars in California. The company has lost a lot of ground in the state, which is the biggest electric vehicle market in the country. According to a report, Tesla's share of the EV market in California fell to 43. 9% in the first quarter of this year from 55. 5% a year ago. Tesla registrations in the first quarter of 2025 fell over 15% from a year earlier — while registrations for all other EVs increased by 35%. Protests have been happening at Tesla showrooms and facilities across the country since Trump was inaugurated. Many of these protests have been peaceful. But there have also been violent or destructive acts directed at the company’s facilities. There have been reports of individual vehicles or Superchargers being vandalized.

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