A prominent Tesla bull has argued that Musk should step back from the Department of Government Efficiency and prioritize the automaker
Shares of Tesla (NASDAQ:TSLA) continued their prolonged losing streak on Thursday, falling nearly 2% to $231.71, with the stock approaching a ninth consecutive week of losses.
Shares of the electric vehicle maker have gained a staggering 18,251% since the company went public in 2010, but the stock has suffered greatly in 2025, with founder Elon Musk’s close and controversial ties to the Trump administration prompting a sharp fall in demand.
The stock’s losses now total more than 38% since the beginning of the year.
Musk’s “crisis moment”
Dan Ives, self-proclaimed Tesla “core bull” and managing director at U.S. financial firm Wedbush, leveled fresh criticism at Musk on Thursday, suggesting the controversial figure should reduce his ties to the Trump administration in order to salvage the brand’s reputation.
Tesla and Musk are experiencing a “brand tornado crisis moment”, Ives said in a CNBC interview. “Taking a step back from DOGE is crucial”.
Ives also went on to argue that Musk’s next steps in handling the situation “will be pivotal in the long term growth trajectory of Tesla”.
Cybertrucks recalled en masse
Ives’ comments come amid a significant mishap for Tesla, with the brand announcing a recall of most of its Cybertruck vehicles on Thursday.
The purpose of the recall, which applies to 46,000 of the vehicles, is to fix a stainless steel panel that the carmaker says could become detached while driving.
Tesla has effectively admitted that it used the wrong glue for the panel when it was first manufactured, stating that a new adhesive solution would be less “prone to environmental embrittlement”.
This is the eighth time in just two years that Tesla has recalled units of the Cybertruck.
However, Ives remains bullish on Tesla’s prospects, with a price target of $550. This is the highest of any Wall Street analyst, and would represent a 133% upside on Wednesday’s closing price.
“If there wasn’t such a bright future, then [this] wouldn’t even mean anything. The irony is it’s probably the best technology innovation ahead”.
