Analyst Warns of Tesla ‘Demand Destruction’ if Musk Remains at DOGE
The electric car giant risks getting caught up in backlash from the Trump administration’s policies, a report from Wedbush Securities warns.
Win McNamee/Getty Images
An analyst from Wedbush Securities has warned that Tesla will be destroyed if CEO Elon Musk continues working at the Department of Government Efficiency (DOGE).
Dan Ives said that Musk should leave government or take a major step back from DOGE and focus on his flailing electric car company, Bloomberg reported.
Ives’ comments, made in a report to clients over the weekend and seen by Bloomberg, warned that Tesla faces a “code red” moment ahead of the scheduled release of first-quarter financial reports on Tuesday.
“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Ives wrote. “Tesla is Musk and Musk is Tesla....and anyone that thinks the brand damage Musk has inflicted is not a real thing, spend some time speaking to car buyers in the US, Europe, and Asia. You will think differently after those discussions.”
Ives warned that Musk’s proximity to President Donald Trump could lead to Tesla being effected by the fallout from the administration’s tariff trade war. Tesla was described in the report as a “political symbol globally of the Trump Administration/DOGE.”
According to Bloomberg, Ives also warned that Tesla faced “potentially 15%-20% permanent demand destruction for future Tesla buyers due to the brand damage Musk has created with DOGE,”
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Last week Trump’s tariffs led to an apparent run on vehicles as consumers tried to make their purchases before the duties took effect—but one company wasn’t cashing in on the surge: Tesla.
The company’s downward spiral, marked by its steepest quarterly loss in over a year, comes as the state’s car market actually sees a boost ahead of anticipated tariffs, according to the California New Car Dealers Association.
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