Dan Ives Calls Elon Musk's Tesla Recommitment 'Most Important Call He's Ever Had' As CEO Scales Back DOGE Role

Tesla Inc. TSLA CEO Elon Musk's renewed focus on leading the electric vehicle company and plan to reduce his involvement in government affairs drew praise from Wedbush Securities analyst Dan Ives.

What Happened: During Tesla’s first-quarter earnings call Tuesday, Musk announced he would reduce his involvement with the Department of Government Efficiency (DOGE) beginning in May, limiting his government work to “a day or two per week.”

“Musk has handled the conference call very well. Recommit to Tesla and major step back on DOGE. This was well communicated by Musk on this call in our view…needed to hear this tone and direction,” Ives wrote on social media platform X following the call.

In a CNBC interview Tuesday, Ives characterized Tesla’s first-quarter results as “a disaster,” with deliveries “significantly” missing expectations. The company reported revenue of $19.34 billion, down 9% year-over-year and below consensus estimates of $21.35 billion.

Why It Matters: Ives, who maintains a bullish stance on Tesla despite recent concerns, had previously warned of a “$100 overhang per share” if Musk remained heavily involved in government activities. He described the earnings call as “the most important conference call he’s ever had” due to mounting brand damage from Musk’s political associations.

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“If he stays and he doubles down and recommits, then I think this starts to become an avalanche that you can’t control,” Ives said, adding that Tesla faces approximately “15-20% brand damage” already.

Tesla’s guidance noted difficulty predicting growth rates due to shifting global trade policies, macroeconomic factors, and “changing political sentiment.” The company confirmed its lower-cost vehicle remains on track for production in the first half of 2025.

Price Action: Tesla closed at $237.97 on Tuesday, up 4.60%. After hours, it rose 5.39% to $250.80. The stock is down 37.26% year to date.

According to Benzinga Edge Stock Rankings, Tesla scores in the 13th percentile for Value and the 67th percentile for Growth. How do other EV rivals stack up? Find out here.

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