Tesla Bull Ives Says Musk Needs to Leave Government Work, Focus on EV Maker

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Bill McColl

Mon, Apr 21, 2025, 8:19 AM 2 min read

Wedbush analyst Dan Ives said Elon Musk must turn his attention away from his federal government cost-cutting efforts and refocus on the electric vehicle maker.
Ives warned the company faces a "code red situation" without Musk changing course.
Tesla is set to report earnings after the close of trading Tuesday.

Tesla (TSLA) shares sank nearly 7% Monday after long-time bull Dan Ives of Wedbush Securities warned the electric vehicle (EV) maker faced a "code red situation" if CEO Elon Musk didn't back away from his service in the Trump administration and refocus on Tesla.

Ives wrote in a note to clients that Musk is too distracted by his efforts to cut federal spending by leading the Department of Government Efficiency, or DOGE. He said Musk "needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time."

Ives pointed out that he remains bullish on the stock, and believes that Tesla and Nvidia (NVDA) are "two of the most disruptive technology companies on the globe over the coming years." However, Ives says that won't happen without Musk giving his full attention to the firm. He added that "we are now at a major crossroads for the Tesla story." The automaker is scheduled to release its quarterly results after the close of trading Tuesday.

Earlier this month, Ives slashed the price target on Tesla to $315 from $550, citing the U.S.-China trade spat plus the backlash against the company over Musk's involvement in the government's cost-reduction moves. He noted that it was a "very bad thing" that Tesla has "become a political symbol globally."

Shares of Tesla are down about 45% year-to-date.