One of Wall Street’s most vocal Tesla bulls is sounding the alarm, warning that Elon Musk’s growing entanglement with the Trump administration is triggering a critical moment for the electric vehicle giant.
Dan Ives, a top analyst at Wedbush Securities, issued a blunt message to Musk on Thursday, urging the CEO to refocus on Tesla before the situation spirals further. Ives described the fallout as a “brand tornado crisis” that Musk himself has created by spending too much time working with Trump’s newly formed Department of Government Efficiency (DOGE).
“Whether you agree with DOGE or not, the point is Musk’s full-time focus there has turned Tesla into a political lightning rod — and that’s bad for business,” Ives wrote in his latest investor note. He warned that Tesla’s brand, once defined by innovation, is now being dragged into polarizing political battles.
The warning comes as Tesla’s stock continues to slide, recently falling to around $230—less than half its peak of $480 in December. Ives noted the stock is now trading below where it was before Trump returned to the White House.
At the same time, protests against Tesla are gaining momentum worldwide, with a sharp rise in vandalism targeting Tesla vehicles and stores. The situation has become so volatile that the current administration labeled some attacks as “domestic terrorism” — a sign of just how deeply Tesla’s public image is being tested.
While Ives stopped short of calling for Musk to step down, others are growing less patient. Notably, Ross Gerber, a vocal Tesla investor and former board aspirant, has already gone public calling for new leadership.
Ives, however, urged Tesla’s board of directors to stop sitting on the sidelines. “It’s time to step up, speak out, and help Musk navigate this storm before lasting damage is done,” he wrote.
The Wedbush analyst—who has long been bullish on Tesla—stressed that his confidence in the company’s future remains intact. But he warned that Musk must balance his time between DOGE and Tesla if he hopes to avoid a more permanent blow to the brand.
In addition to reducing his political involvement, Ives pressed Musk to finally deliver clarity on Tesla’s much-hyped affordable models and its plans for a robotaxi service — two critical projects that could redefine the company’s future.
“Announce concrete timelines. Show the market you’re still focused on the core mission. That’s how you rebuild trust,” Ives urged.
He acknowledged that critics won’t disappear overnight, but said bold action now could prevent this crisis from leaving permanent scars on Tesla’s reputation.
“Musk can still stop the bleeding,” Ives concluded, “but the clock is ticking.”
