Wedbush Securities‘ head of technology research, Dan Ives, has called on Elon Musk to balance his roles at Tesla Inc. (NASDAQ:TSLA) and DOGE for the benefit of Tesla’s shareholders.
What Happened: In a post on X, Ives, a known Tesla bull, expressed his belief that the current leadership situation at Tesla is “unsustainable” for shareholders.
He emphasized that it is time for Musk to lead Tesla into its next phase of growth. The post also referred to Ives’ interview on CNBC Closing Bell wherein he weighed on Musk’s role in Tesla at this difficult juncture.
Ives remains bullish on Tesla despite the stock being down over 50% from its recent high and facing negative market sentiment.
However, he acknowledges that Tesla is at a pivotal moment due to Musk’s distractions, including his political involvement. In a separate Wedbush investor note, Ives wrote to investors, “If Musk continues to head down the DOGE path 110%…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.”
While sales have declined significantly, particularly in China, Europe, and the U.S., Ives believes 90% of Tesla’s future value would be derived from autonomous technology and refreshed vehicle models.
Why It Matters: Ives’ comments come amidst a significant decline in Tesla’s stock, which is down over 50% from its recent high. This decline has been attributed to Musk’s challenges in managing his various roles, including his work with the Department of Government Efficiency (DOGE) in the Trump administration.
Musk admitted to experiencing difficulties running his businesses while working with the Trump administration.
Despite these challenges, Ives maintains a $2 trillion valuation outlook for Tesla, citing its future in autonomous technology and refreshed vehicle models. He insists, however, that Musk must refocus on leadership for the sustainability of Tesla shareholders.
Tesla stock climbed 3.79% on Tuesday to close at $230.58, as per Benzinga Pro.
- READ MORE: Here’s When TSLA’s Crash Will Finally Stop
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
