Wedbush analyst Dan Ives warns Tesla (NASDAQ:TSLA) is facing a “code red situation”, driven by CEO Elon Musk's political entanglements and Dogecoin (DOGE) promotion. With Tesla at a major crossroads, Ives urges Musk to step back from politics and refocus on core operations ahead of next week's critical earnings report.

Brand Fallout and Demand Destruction

• Political Symbol

  • Musk's alignment with the Trump Administration and vocal DOGE support have transformed Tesla into a “political symbol globally.”

• Consumer Backlash

  • Protests at dealerships and social media campaigns have emerged.

  • Ives estimates 15-20% permanent demand destruction among future Tesla buyers due to brand damage.

Delivery and Financial Headwinds

• Q1 Deliveries

  • Tesla reported weaker‑than‑expected first‑quarter deliveries.

  • Street forecasts for 2025 deliveries have fallen from 2 million to ~1.65 million.

• Earnings Projections

  • Wedbush sees EPS converging around $2 for 2025, with further downside possible.

The Road to Recovery

• Refocus on Core Business

  • Ives insists Musk must step away from political roles, dial back DOGE promotion, and dedicate himself fully to Tesla's operations.

• Earnings Call Watch

  • Investors will seek clarity on:

    1. Full Self‑Driving timelines

    2. Lower‑cost vehicle rollout

    3. AI and robotics roadmap

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