Elon Musk’s political antics are spooking long-term Tesla bull Dan Ives.
Tesla is in crisis and only Musk can fix it, said the analyst, with Musk’s Doge (Department of Government Efficiency) work turning Tesla “into a political symbol”.
Violence at Tesla dealers, cars being keyed, international protests, a “brand tornado crisis” that has “spread globally” – Musk must formally announce he will balance Doge and being Tesla chief executive, said Ives. If he does, the heat will “dissipate” and “leave a scar for Tesla, but not permanent brand damage”.
Ives is a high-profile analyst, and his note attracted much attention. Though intended to be hard-hitting, it was a US-centric analysis that arguably underestimates Tesla’s brand damage. Even if Musk quit Doge tomorrow, people would not forget his infamous fascist-style salute.
That will remain an especially sore point in Germany, as will Musk’s support for the far-right AfD party. Supporting imprisoned far-right activist Tommy Robinson, endorsing Conor McGregor for the presidency of Ireland, peddling disinformation and conspiracy theories – for many, Doge is the least of their problems with Musk.
“Tesla is Musk and Musk is Tesla,” said Ives. That’s true – and it’s exactly the reason why expecting limited brand damage appears as wishful as Ives’s $550 Tesla price target.
