Musk called upon to refocus on Tesla, restore investor confidence in its shares

Tesla is facing a major crisis after its shares lost nearly 50% of their value since their peak in December 2024. This has prompted renowned analyst Dan Ives of Wedbush to call on CEO Elon Musk to refocus his efforts on the company to restore investor confidence.

According to Yahoo Finance, Ives emphasized that while Tesla is facing a major crisis, Elon Musk is the only one capable of fixing the situation, emphasizing that the company urgently needs to clarify its future strategy.

Ives indicated that there are two key steps Musk must take immediately to save Tesla and restore confidence in its shares: Musk announces a balance between his roles: Musk must clarify how he balances his role as head of the White House Task Force on Government Efficiency with his role as CEO of Tesla. There’s a growing impression that Musk is devoting most of his time to other projects, including the Ministry of Government Efficiency, which could negatively impact his performance at Tesla.

Regarding details of Tesla’s future plans, Ives said that Musk needs to clarify details of Tesla’s plans to produce low-cost electric vehicles, a project expected to begin in 2025. Reports indicate that these vehicles will be a simplified version of the Model Y and will be launched first in the Chinese market.

Ives also stressed the importance of providing updates on the Robotaxi self-driving taxi project, which is scheduled to launch in June in Austin. This project is a key factor in investors’ assessment of Tesla’s stock performance, so it is essential that Musk clarify its plans to alleviate concerns.

This coincides with a crisis facing Tesla, with approximately 46,000 Cybertrucks being recalled due to issues with exterior panels. This latest crisis has increased pressure on the company and raised further concerns among investors. Ives expects Musk to reveal Tesla’s new plans during its earnings call scheduled for next May. It’s worth noting that Elon Musk previously asked Tesla employees to hold onto their shares and sent a letter to vandals urging them to stop behaving erratically, as the electric car maker continues its record-breaking weekly loss streak. Tesla shares have fallen about 39% this year, as Musk’s involvement in politics has worried investors.