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After weeks of steadily falling, Tesla (TSLA) stock is showing no signs of bucking the bearish momentum pushing it down.
The leading electric vehicle (EV) producer enjoyed notable momentum following President Donald Trump’s November 2024 victory. However, since Trump officially took office, Musk’s antics on Capitol Hill and his work with the so-called Department of Government Efficiency (DOGE) have caused this growth trend to reverse sharply.
Granted, many prominent tech stocks are struggling right now as economic uncertainty continues to push down financial markets. But TSLA stock has fallen further than most of its Magnificent 7 peers, declining more than 33% over the past month.
As the outlook worsens for investors, questions abound as to what Musk should do and if he will return to running his company. One tech sector expert recently weighed in, highlighting the importance of Musk shifting focuses back to Tesla.
One Wall Street analyst is shifting gears on Tesla and Musk
As the tech sector has experienced high volatility, one of Wall Street’s most notorious TSLA bulls has maintained his positive outlook on the stock. But recently, his team published a report with a tone that isn’t quite so positive.
Dan Ives of Wedbush Securities is known for optimistic takes on both Musk and Tesla. He has long maintained a highly bullish outlook on the EV leader. He currently maintains an Outperform rating and a price target of $550, which is extremely bullish, as the stock currently trades at $230 per share.
Related: European tech companies reveal strategy to take on Elon Musk
On March 6, Ives’ team released a report that added TSLA stock to the Wedbush Best Ideas List. Less than a week later, on March 11, they released another one with an extremely different tone.
This one began by providing a definition of the word “balance,” stating that it had been missing from Musk’s ability to run Tesla.
Ives and his team break down exactly why they believe Musk’s involvement with DOGE is compromising his ability to lead Tesla and why it may be concerning to investors. They highlight that over the past few months, Musk has not been present at any Tesla facilities, stating that “perception has become reality for Tesla shares.”
This has led to what the analysts describe as a “moment of truth” for Musk and 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 report states. “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.”