Tesla (TSLA) CEO Elon Musk has created a “code red situation” for the automaker through his work in the Trump administration, warned British bank Barclays.
The bank slashed its price target on TSLA to $275 from $325. It kept an Equal Weight rating on the name.
Meanwhile, well-known analyst Dan Ives, who works for investment bank Wedbush, wrote what he believes the tech giant must accomplish going forward.
Barclays’ Take on TSLA
In addition to Musk’s participation in DOGE, Tesla is being undermined by its deteriorating fundamentals, according to the British bank. Consequently, TSLA will have a tough time selling more automobiles in 2025 than it did in 2024, Barclays believes.
On the other hand, according to the British bank, Musk can right the ship by talking about the launch of Tesla’s robotaxis on its upcoming earnings call, which is slated to occur tomorrow.
Ives’ Advice to Musk
Tesla’s CEO needs to resign from the Trump administration and provide “the timeline (and) hard facts” regarding the robotaxi launch and the company’s robotics initiatives, Ives wrote.
Even if Musk steps down from the government now, “there will be permanent brand damage,” according to Ives. But “the (company’s) long-term story will not be altered,” he believes.
By remaining with DOGE, Musk would “change the future of Tesla (and its) brand damage will grow,” Ives stated.
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This article is originally published at Insider Monkey.
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