Tesla’s reputation is under fire, with shares losing over 40% of their value this year due to a backlash from Elon Musk’s work on the Department of Government Efficiency and his role in DOGE, the Trump administration’s cost-cutting agency. Long-time Tesla bull Dan Ives, an analyst at Wedbush Securities, believes that Musk is the only one who can fix the crisis. To do so, Musk needs to clearly announce his intention to balance both roles and provide investors with a roadmap for upcoming EV releases and details on full self-driving technology.
Ives and his team maintained their outperform rating and $550 price target for Tesla, citing a “brand tornado crisis” as the main factor behind the company’s struggles. To prevent permanent brand damage, Musk must address investor concerns by providing more transparency on his priorities and progress. The analysts’ recommendations come after Tesla has seen its sales slow in key markets including the US, China, and Europe.
Source: https://www.investopedia.com/wedbush-analysts-say-musk-needs-to-announce-he-will-balance-doge-and-being-tesla-ceo-11700385