Wedbush analyst Dan Ives believes that EV maker Tesla (TSLA) is facing a “crisis” and that CEO Elon Musk needs to refocus on the company in order to turn things around. Tesla’s stock has dropped nearly 50% from its December high, and Ives says that Musk is the only one who can fix the situation. As a result, he outlined two key steps that Musk must take soon to rebuild investor confidence and get the stock back on track.
First, Ives says Musk needs to clearly explain how he will balance his role as head of the White House Department of Government Efficiency (DOGE) task force while leading Tesla. Many investors worry that Musk is spending too much time on DOGE and not enough on Tesla. Ives expects Musk to address this issue before or during Tesla’s first-quarter earnings call in May since he believes that a public commitment to Tesla would help ease investor concerns.
Second, Tesla must provide a clear plan for its affordable electric cars, which are expected to launch in 2025. Investors also want more details on Tesla’s upcoming Full Self-Driving (FSD) robotaxi rollout in Austin, Texas, as autonomous technology is a big part of Tesla’s future growth. On top of all this, Tesla is dealing with other challenges, such as inventory issues and a recall of 46,000 Cybertrucks due to panels flying off. Nevertheless, Ives still has a positive outlook on Tesla with a $550 price target, but he warns that Musk needs to act quickly.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 11 Holds, and 11 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $336.04 per share implies 42.4% upside potential.
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