Tesla’s future hangs in the balance as investors await its first-quarter earnings report, with CEO Elon Musk’s increasingly public views and role in slashing government budgets sparking a ‘code red’ situation.
Tesla is set to report its first-quarter earnings, and investors are bracing themselves for a ‘messy’ rollercoaster ride.
The electric vehicle maker’s stock price has fluctuated wildly amid President Donald Trump‘s tariff war, with shares currently down over 37 percent year-to-date.
Tesla, Inc. is an American electric vehicle and clean energy company founded in 2003 by Elon Musk, Martin Eberhard, Marc Tarpenning, JB Straubel, and Ian Wright.
The company's first production vehicle was the Tesla Roadster, which debuted in 2008.
Since then, Tesla has expanded its product line to include the Model S, Model X, Model 3, and Model Y.
As of 2022, Tesla is one of the largest electric vehicle manufacturers globally, with over 1 million vehicles delivered in 2020 alone.
Donald Trump is a businessman, television personality, and politician who served as the 45th President of the United States from 2017 to 2021.
Born on June 14, 1946, in Queens, New York, he rose to fame with his reality TV show 'The Apprentice.'
Trump's presidential campaign focused on immigration reform, trade policies, and economic growth.
He was a Republican nominee who won the election despite significant opposition.
During his presidency, Trump implemented several notable policies, including tax cuts and deregulation efforts.
The Code Red Situation
Longtime Tesla megainvestor and Wedbush Securities analyst Dan Ives has warned that CEO Elon Musk has created a ‘code red’ situation for the company. Sales have dropped off a cliff worldwide, with Ives attributing this to Musk‘s increasingly public and extremist views, as well as his role in slashing government budgets.
Elon Musk is a South African-born entrepreneur and business magnate.
He co-founded PayPal, SpaceX, Tesla, Neuralink, and The Boring Company.
Musk's ventures have revolutionized the electric car industry with 'making sustainable energy more accessible' at 'Tesla'.
His ambitious plans for 'establishing a human settlement on Mars' include his company SpaceX.
With an estimated net worth of over $200 billion, Musk is one of the richest people in the world.
Just two months ago, Ives raised his Tesla price target to $550, predicting a ‘golden era’ for Musk with Trump in the White House. However, Tesla’s stock price has plummeted to $237 per share, with its market cap at just $740 billion. Investors are concerned that if Musk can’t undo the damage he’s inflicted, it could fall much further.
A Shift in Outlook
Ives also predicted ‘very solid’ delivery demand for Tesla’s vehicles, which has instead cratered this quarter, even falling behind rival BYD. As bad news added up, Ives cut his target by 43 percent, citing Musk‘s disastrous political scheming as the driving force behind the brand damage.
Musk‘s absence from the company is a concern, with Ives arguing that the CEO needs to leave the government and take a major step back on social media. ‘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,’ he said.
The Future of Tesla
In the run-up to the company’s earnings call, Tesla’s share price has been volatile, sinking over six percent on Monday only to recover by midday Tuesday. Investors are eager for answers about the company’s future, particularly regarding its conventional lineup, which hasn’t seen a major overhaul in quite some time.
Rumors of a purportedly cheaper mass-market vehicle based on the Model Y SUV have surfaced, but concerns remain over Tesla getting caught up in Trump‘s trade war against China. Ives predicted tough days ahead for the carmaker, stating that ‘we view this as a fork in the road time.’ If Musk leaves the White House, there will be permanent brand damage, but Tesla will have its most important asset and strategic thinker back as full-time CEO.
However, if Musk chooses to stay with the Trump White House, it could change the future of Tesla and lead to increased brand damage. The outcome is far from certain, leaving investors on edge as they await the company’s earnings report.
- futurism.com | Formerly Optimistic Tesla Megainvestor: Code Red
