Leading Analyst Criticizes Elon Musk for Overlooking Tesla Factories for More Than 2 Months, Calls for Him to “Take Action”

This article does not constitute investment advice. The author holds no positions in any mentioned stocks.

Recovery for Tesla Stocks Amid Political Challenges

Following a day of significant losses, Tesla’s stock is showing signs of modest recovery today, partially fueled by President Trump’s announcement that he intends to buy a “brand new”Tesla electric vehicle. This move may be a strategic attempt to mitigate the negative perception stemming from recent politically charged incidents involving Tesla showrooms and vehicles across the United States and the European Union. However, a leading analyst contends that for this initial recovery to achieve long-term success, CEO Elon Musk must enhance his focus on the company.

The Challenges Facing Tesla

As previously discussed, Tesla is grappling with a complex array of challenges, including the impact of overt political involvement on its sales strategy and increased competition from China’s electric vehicle market. Dan Ives from Wedbush has expressed serious concerns regarding Musk’s current priorities, arguing that he needs to find a balance between his leadership role at Tesla and his political engagements related to cryptocurrency.

“In a nutshell the word ‘balance’ has been missing with Elon Musk and his ability to run Tesla as CEO…while instead focusing all of his energy and time driving his DOGE initiative within the Trump Administration.”

Musk’s Absence and Market Reactions

Ives highlights Musk’s lack of visibility within Tesla’s operational spaces, noting, “there has been little to no sign of Musk at any Tesla factory or manufacturing facility the last two months, ”a situation that he believes has adversely affected the perception of Tesla shares.

Characterizing this period as a “moment of truth, ”Ives warns that as Musk’s involvement in DOGE initiatives intensifies, protests at Tesla dealerships have surged, along with increased hostility directed toward Tesla vehicle owners.

“The stock has been under massive pressure, down over 50% from its highs in December, and Tesla investors are seeing patience wear thin as Musk is not reading the room.”

Future Outlook for Tesla

Although Ives notes some deterioration in Tesla’s brand image remains “contained, ”with only 5 percent of Tesla owners reconsidering their purchase, he cautions that a more significant decline is a real possibility if current trends continue.

Spot on, @DivesTech.“Been here before many times with Tesla…This is the start of the biggest innovation and technology cycle in Tesla’s history ahead over the next few years….The launching of unsupervised FSD in Austin, Texas this June kicks off the autonomous era at… pic.twitter.com/KM7cdCKhDf

— Ale𝕏andra Merz 🇺🇲 (@TeslaBoomerMama) March 10, 2025

Despite these challenges, Ives remains optimistic about Tesla’s innovation trajectory. He points out promising developments, such as plans for a new compact electric vehicle priced under $35, 000, anticipated before summer, and the expected rollout of unsupervised Full Self-Driving (FSD) technology in Austin, Texas, this June.

Notably, Tesla shares experienced an approximate 5 percent increase during the early trading hours today. The sustainability of this positive trend, however, remains uncertain as the market continues to respond to ongoing developments.

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