"Is Elon Musk Losing Control? Tesla Mega Bull Issues Shocking Warning!"

BEVERLY HILLS, CALIFORNIA - MAY 6: Elon Musk, co-founder of Tesla and SpaceX and owner of X Holdings Corp., speaks at the Milken Institute's Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California. The 27th annual global conference explores various topics, from the rise of generative AI to electric vehicle trends and features participants, soccer star David Beckham and actor Ashton Kutcher. (Photo by Apu Gomes/Getty Images) — Elon Musk seems to be distracted from running Tesla lately and some financial experts are concerned by the stock’s performance (Photo by Apu Gomes/Getty Images)

After weeks of steadily falling, Tesla (TSLA) stock is showing no signs of bucking the bearish momentum pushing it down.

The leading electric vehicle (EV) producer enjoyed notable momentum following President Donald Trump’s November 2024 victory. However, since Trump officially took office, Musk’s antics on Capitol Hill and his work with the so-called Department of Government Efficiency (DOGE) have caused this growth trend to reverse sharply.

Granted, many prominent tech stocks are struggling right now as economic uncertainty continues to push down financial markets. But TSLA stock has fallen further than most of its Magnificent 7 peers, declining more than 33% over the past month.

As the outlook worsens for investors, questions abound as to what Musk should do and if he will return to running his company. One tech sector expert recently weighed in, highlighting the importance of Musk shifting focuses back to Tesla.

One Wall Street analyst is shifting gears on Tesla and Musk

As the tech sector has experienced high volatility, one of Wall Street’s most notorious TSLA bulls has maintained his positive outlook on the stock. But recently, his team published a report with a tone that isn’t quite so positive.

Dan Ives of Wedbush Securities is known for optimistic takes on both Musk and Tesla. He has long maintained a highly bullish outlook on the EV leader. He currently maintains an Outperform rating and a price target of $550, which is extremely bullish, as the stock currently trades at $230 per share.

On March 6, Ives’ team released a report that added TSLA stock to the Wedbush Best Ideas List. Less than a week later, on March 11, they released another one with an extremely different tone.

This one began by providing a definition of the word “balance,” stating that it had been missing from Musk’s ability to run Tesla.

Ives and his team break down exactly why they believe Musk’s involvement with DOGE is compromising his ability to lead Tesla and why it may be concerning to investors. They highlight that over the past few months, Musk has not been present at any Tesla facilities, stating that “perception has become reality for Tesla shares.”

This has led to what the analysts describe as a “moment of truth” for Musk and Tesla.

The team notes that they maintain their bullish thesis on TSLA stock, partially as Trump’s presidency may “create the fast track for an autonomous federal roadmap.” While that could certainly benefit Tesla, it should be noted that other automakers are outpacing Tesla in this area.

As TheStreet reports, Chinese tech leader BYD Company (BYDDF) looks poised to dominate the autonomous driving market in China, which could compromise Tesla’s prospects of cornering that market.

Ives isn’t giving up on Tesla, but he stresses concerns about Musk

Wedbush’s most recent Tesla report ends with Ives’ team reiterating their bullish thesis on Tesla stock. Therefore, it can’t be described as a full 180 regarding Ives’ stance on Tesla stock.

All the same, the “Moment of Truth” report makes it clear that these experts are worried about Musk’s leadership. Ives and his team highlight that if Musk keeps most of his focus on DOGE instead of Tesla, the company’s brand could suffer pervasive damage and ultimately be much harder to fix. As the report notes: