Wedbush Securities analyst Dan Ives has some harsh words for Elon Musk, saying the Tesla CEO needs to worry less about politics and focus on running his companies.
Ives is usually one of Tesla’s most bullish analysts, but even he is tired of Musk abandoning his day-to-day leadership of the automaker. In recent weeks, Tesla’s stock has plummeted, largely as a result of people having a negative view of Musk’s DOGE-related actions.
Teslarati posted a copy of Ives’ note to investors on Twitter, where the analyst called for Musk to “step up” and focus on what shareholders expect him to to.
The definition of balance: the ability to be steady, the equality of two sides and having different parts or elements properly or effectively arranged, proportioned.
Musk needs to step up as Tesla CEO at this critical juncture. In a nutshell the word “balance” has been missing with Elon Musk and his ability to run Tesla as CEO….while instead focusing all of his energy and time driving his DOGE initiative within the Trump Administration.
Ives points out the extent to which Musk has abandoned his responsibilities as Tesla CEO.
Since Trump’s White House 2nd term kicked off in January we have seen Musk and Trump connected at the hip with Musk essentially living at the White House and Mar-a-Lago in Palm Beach. There has been little to no sign of Musk at any Tesla factory or manufacturing facility the last two months and perception has become reality for Tesla shares. Trump getting elected President was a huge moment for Musk and Tesla in our view as this will create the fast track for an autonomous federal roadmap…however the DOGE efforts has now intertwined Tesla into this brewing political firestorm.
‘Moment of Truth Ahead’
Ives goes on to say that Musk and Tesla are facing an upcoming moment of truth, in which Musk will need to demonstrate where his priorities are.
“Moment of truth” ahead for Musk/Tesla. The more Musk doubles down on DOGE and the Trump Administration…we have seen more protests erupt at Tesla dealers and violence against Tesla drivers in spots across the US and Europe. The stock has been under massive pressure down over 50% from its highs in December and Tesla investors are seeing patience wear thin as Musk is not reading the room. We believe this is a “moment of truth” for Musk and Tesla….if Musk continues to head down the DOGE path 110% and showing no attention to Tesla during this turbulent time then brand damage will become more pervasive as right now our work in the field shows less than 5% (very contained) of Tesla owners would second guess buying a Tesla again due to Musk. We have been here before with Musk many times over the last decade…and he ultimately stepped up for Tesla shareholders.
In a statement to Fortune, Ives was even more blunt.
“Becoming a political object is a dangerous path,” he told the outlet.
“As someone who’s covered Tesla for many, many years, it was time to communicate to Musk and the board what Tesla shareholders are telling us: Balance your time,” he added. “Show that you are Tesla CEO.”
“This is not the time to just play in the DOGE sandbox,” Ives concluded. “He needs to step up.”
from WebProNews https://ift.tt/DSaC4Zx
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