The trouble for Tesla shows no sign of slowing. Indeed, the electric vehicle maker and its CEO Elon Musk are in the midst of a "brand tornado crisis moment," says Dan Ives, managing director of financial firm Wedbush and "Tesla's most bullish Wall Street analyst," per Business Insider. Tesla's stock has fallen 53% from its all-time high in mid-December. Customers have been selling off their vehicles, while vandals have been targeting Teslas across the country. On Tuesday, a day before it was to begin, the Vancouver International Auto Show booted Tesla, citing safety concerns, reports CTV News.
A day later, protesters announced plans to hold 500 demonstrations at Tesla showrooms around the world on March 29, per the Guardian. Many are upset with Musk's efforts to slash government jobs through the Department of Government Efficiency. Whether or not you agree with what DOGE is doing, "Musk spending 110% of his time with DOGE (and not as Tesla CEO) ... has essentially turned Tesla into a political symbol," which is "a bad thing," Ives writes in a Wednesday memo, per BI. Facing a crossroads, Tesla needs its leader, and "investors need to see Musk take a step back and balance his DOGE and Tesla CEO roles," Ives writes.
If Musk does step back, there will be "a scar for Tesla," but no "permanent brand damage," Ives argues. He calls on Musk to explain how he will manage his roles with Tesla and DOGE no later than Tesla's first quarterly earnings call in early May and to provide a "roadmap" for Tesla's 2025 lower-cost vehicle releases amid "inventory issues, and a host of demand issues." Otherwise, this crisis could "snowball into a much more black swan event for the Tesla brand over the coming years," Ives warns. Shortly after Ives penned the memo, Tesla announced yet another recall of its Cybertruck due to the risk of a steel panel flying off while driving, Reuters reports. (More Tesla stories.)
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