Tesla Inc's (NASDAQ:TSLA) stock is in trouble and, according to Wedbush analyst Dan Ives, there’s only one person who can fix it: Elon Musk.
Investors have been growing uneasy as Musk’s attention shifts away from Tesla, with his focus on DOGE (Department of Government Efficiency) and political entanglements creating a “brand tornado crisis”.
The company’s stock has taken a hit, and is down 38% in the year to date, with reports of vandalism at Tesla dealerships and growing backlash against Musk’s public persona.
Trump purchase
And while President Donald Trump’s highly publicised Tesla purchase may have made for great political theatre, Ives argues it has only further entrenched the carmaker in a polarised debate rather than addressing the real issues at hand.
For Wedbush, the path forward is clear. Rather than stepping down as CEO, as one investors recently advised, Musk needs to step back from his public distractions and reaffirm his role as Tesla’s CEO.
Investors, according to Ives, are looking for reassurance that Tesla remains his priority.
A statement - preferably before the company’s first-quarter earnings call in May – would go a long way in easing concerns.
Step-two
The second step is delivering concrete details on Tesla’s upcoming lower-cost vehicle and the rollout of its unsupervised Full Self-Driving (FSD) system, both critical to Tesla’s growth prospects.
Amid concerns over demand and inventory issues, these initiatives could serve as a much-needed confidence boost for investors.
Despite the turmoil, Wedbush remains bullish on Tesla, maintaining an 'outperform' rating and a $550 price target – more than double its current price of around $235.86.
Ives makes it clear that Tesla’s long-term potential remains intact, but Musk must regain investor trust. With Tesla’s future hanging in the balance, the next few months will be crucial for the company – and for Musk himself.