Main to remember
- Wedbush analyst Dan Ives said that Elon Musk was to divert his attention from his efforts to reduce the cost of the federal government and refocus on the manufacturer of electric vehicles.
- Ives warned that the company is faced with a “red situation of the code” without a musk change course.
- Tesla is expected to publish profits after the closing of the negotiation on Tuesday.
Tesla’s shares (TSLA) sank almost 7% on Monday after Bull Ives for a long time of Wedbush Securities warned that the electric vehicle manufacturer (EV) had faced a “red situation of the code” if the CEO Elon Musk did not withdraw from his service in the Trump administration and refocus on Tesla.
Ives wrote in a note to customers that Musk is too distracted by his efforts to reduce federal spending by directing the Ministry of Government efficiency, or DOGE. He said Musk “needed to leave the government, take a major step back to Doge and start being CEO of Tesla at full time”.
Ives stressed that it remains optimistic about the stock and thinks that Tesla and Nvidia (NVDA) are “two of the most disturbing technological companies in the world in the years to come”. However, Ives says that this will not happen without Musk paying his attention to the company. He added that “we are now at a large crossroads for the history of Tesla”. The automaker is expected to publish its quarterly results after the closing of negotiation on Tuesday.
Earlier this month, Ives reduced the target of Tesla to $ 315, against $ 550, citing the American-China trade spit plus the counterpoup to society for the involvement of Musk in government cost reduction movements. He noted that it was a “very bad thing” that Tesla “became a political symbol on a global scale”.
Tesla’s shares have been down approximately 45% since the start of the year.
Tradingview
