Tesla (NASDAQ: TSLA) shares swooned nearly 7% on Monday after Wedbush Securities analyst Dan Ives weighed in. Mr. Ives has previously maintained an upbeat view on the electric vehicle (EV) maker but labelled the company as facing a “code red situation” barring a change by Chief Executive Officer Elon Musk in focuses right now. Musk is also facing questions regarding his focus from Wedbush Securities
Wedbush Securities Point of View: Musk’s Leadership Focus at Tesla
According to Wedbush Securities analyst Mr. Ives in a note to clients, Mr. Musk also is busy overseeing the Department of Government Efficiency, or DOGE, as it works on “government-wide cost-saving measures,” taking vital focus away from Tesla. He said Mr. Musk “Should really take a leave of absence from Government — and take the firm stand on DOGE — get back to FULL TIME CEO of Tesla. According to Wedbush Securities, Musk must get back on track with the electric vehicle maker.
Wedbush Keeps Up Bullish Take on Tesla EVs Despite Musk Distractions
Mr. Ives of Wedbush Securities retained a positive long-term view on Tesla’s prospects in the electric vehicle space, but he was concerned about Mr. Musk’s split attention. And he said Tesla is one of the “two most disruptive technology companies on earth in the next few years” along with Nvidia (NVDA). But he qualified that by saying this potential can only be achieved if Mr. Musk applies himself full-time to the company. He added: “We are at a critical inflection point for the Tesla story. The all-electric vehicle maker is set to report its quarterly results after the close Tuesday. This is the reason Wedbush Securities is keeping an eye on Tesla.
Effect of Trade Landscape and Musk’s Role in Government on Tesla Electric Vehicle Price
Two weeks ago in April, Wedbush Securities’ Mr. Ives cut the price target for Tesla shares to $315 from $550. The change was blamed on the continuing USA-China trade status and adverse comments relating to Mr. Musk’s involvement in the government cost-reduction program. He called it “a very bad thing” that Tesla has “become a political symbol around the world.” The drop in share price reflects investors’ opinions of these drivers as well as Mr. Musk’s outside trips. Wedbush Securities has studied how these factors impact Tesla.
Tesla Electric Vehicle Shares Year to Date During Musk plays Both Roles of Hero and Villain
Tesla shares, the most prominent name in the electric vehicle space, had shown weakness on the year. Since the start of the year, the stock price has lost around 45%, as of the date of this report. This action implies that investors are cautious and sensitive to the elements pointed out by the Wedbush Securities analyst, including Mr. Musk’s style of leadership and microbusiness and trade trends. That fall has been highlighted by Wedbush Securities.
Attention Turns Towards Upcoming Tesla Electric Vehicle Earnings Report as Musk’s Focus Is Points
Tesla is set to report quarterly earnings after the market closes Tuesday. This report will give investors more information about the company moving forward that could influence both sentiment and value of the stock. Analysts and investors — including the folks at Wedbush Securities — will be watching carefully for the reported numbers, as well as any comments on the future from the company’s management, especially regarding the focus of Mr. Musk and Tesla on its EV business. After the report, analysis by Wedbush Securities.
Other Key Information
Wedbush Securities, a financial services and investment firm that covers, among other topics, the electric vehicle market. Of course, analyst ratings and price targets don from firms like Wedbush Securities can heavily influence investor decision-making as well as the stock prices of firms such as Tesla. Note that Wedbush Securities previously covered Tesla.
In fact, Elon Musk, in addition to being CEO of Tesla, is also involved with other ventures and — as seen — he is taking part of a federal government expense-slashing efforts. Investors and analysts debate how he balances the time and attention he gives to all of these roles with his responsibilities leading Tesla’s electric vehicle business. According to Wedbush Securities, Musk will be Firstly busy with the new Twitter but things need to be on some priority as well.
USA-China trade relationship has been one of the major global drivers over the last 2 years impacting several industries including automotive along with Tesla and Electric Vehicles. Tariffs, trade tensions can hinder the supply chains, production prices, and the consumer interest in Tesla’s EVs. Wedbush Securities has assessed some of these impacts.
Tesla quarterly earnings reports contain standard info about revenue, profit margins, production numbers, and deliveries of its EVs. Investors turn to these reports to mimic the health of the company and its potential to take off. These reports are for use in analysis by Wedbush Securities.
Nvidia (NVDA): Nvidia is a global technology company known for its GPUs and AI hardware and software. The comparison Mr. Ives drew for Tesla and Nvidia predicated on them both being disruptive technology companies in the EV and AI front, respectively. Wedbush Securities has them both as principal players.
The new federal government Department of Government Efficiency (DOGE) is sold as a cost-cutting measure. Finally, concerns about distraction from Mr. Musk pulling this department, and by extension, his responsibilities at Tesla — particularly its electric-vehicle operation — further mentions of Mr. Wedbush Securities has weighed in on this.
The year-to-date performance is the price change of a stock from the first day of the calendar year to present day. A sharp sell-off in Tesla shares would show that investors are unfazed or worried about Mr. Musk’ focus on the EV maker. This trend has been observed by Wedbush Securities.
Various factors can affect stock trading volume and price movements, from company-specific news to industry trends to economic data (such as that from the Bureau of Economic Analysis) to analyst ratings — as is the case with Tesla stock this morning in pre-market trade as we get closer to the opening bell and response to an analyst note from Wedbush Securities.
Interest among investors is a critical driver of stock valuations. As known, positive sentiment can be the driving force behind price increases and negative sentiment is often the cause of declines. For instance, the sentiment of analysts like Wedbush Securities also has a role to play when it comes to defining how investors will feel over Tesla and electric vehicles in general.
Tesla is one of the big names in the electric vehicle (EV) market, which is a fast-growing space. Investors focused on sustainable transport growth pay close attention to how the company develops and performs in the future. One of the major analyst shops covering this space is Wedbush Securities.
