Tesla bull issues 'code red' warning to Elon Musk to leave DOGE immediately
One key industry analyst was warned that electric car giant Tesla could be facing a challenging future if CEO Elon Musk doesn't step away from his currently role as head of the Department of Government Efficiency (DOGE).
You don't get to be the richest man in the world without having your hands in a few jars, and Musk's control over several of the world's leading companies has certainly helped him build what is now an unchallenged net worth.
Being head of Tesla, SpaceX, X, and also supposedly a world-leading gamer is more than enough to eat up your time during the day, but Musk also added an all-encompassing role as head of the new Department of Government Efficiency earlier this year.
Within this role, Musk was tasked by US President Donald Trump with reducing wasteful spending in government, with an end goal of $2 trillion set at the start.
Advert
Understandably, much of Musk's time and media attention has been spent in this role, but it appears to have had a negative effect on the status of his car company Tesla, which is suffering significantly on the stock market.
Not only is the vehicle manufacturer suffering sales declines, significant stock market losses, and tariff troubles, but the brand as a whole has taken a significant hit due to Musk's negative reputation.
There have been mass protests against the company as a result of Musk's government presence, in addition to incidents of vandalism to the point where President Trump has branded any aggressors 'domestic terrorists'.
Even a bizarre publicity stunt involving the president wasn't enough to shift the tides for Tesla, as the company has seen a 45% decline on the stock market since Trump and Musk took to office.
As reported by Yahoo! Finance, one key industry expert has signalled that this could be a major turning point for Tesla, and Musk must act quick if he wants to save the car company from continued failure.
On the eve of Tesla's next earnings report, Wedbush Securities analyst Dan Ives has called Tesla's current state a "Code Red Situtation," and urged Musk to step back from DOGE.
"Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time," argued Ives. "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 has also illustrated that right now is "a fork in the road time" where Musk's decisions will likely carry significant weight when it comes to the future of Tesla. Ives argues that while he will undoubtedly suffer brand damage as a result of leaving government, it will likely save Tesla from increasing turmoil as investor confidence is resumed.
He might have his wish though, as Musk has communicated that he's looking to exit from his role as head of DOGE next month, and this has since been confirmed by President Trump too.
It remains still up in the air as to whether Musk will continue to play advisor to Trump though, or whether a workaround will be found, allowing Musk to continue serving as head of the government's cost-saving department.