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Tesla Faces ‘Code Red’ as Analyst Urges Musk to Exit Government Role

  • Elon Musk is facing a brand crisis, prompting a live company update alongside Tesla's earnings report for the first quarter of 2025.
  • Tesla is experiencing a significant crisis, with sales declining for the first time in 2024 and continuing to fall in 2025, amid boycotts and protests against Elon Musk's political involvement.
  • Tesla's stock has dropped 40% year-to-date, and with approximately 40,000 fewer vehicles delivered in Q1 2025 compared to last year, the company anticipates a tough earnings report.
  • Wedbush analyst Dan Ives warned that Tesla is in a 'code red' situation if Musk does not step back from his government role related to DOGE and focus on Tesla to stabilize the company.
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Forbes broke the news in United States on Monday, April 21, 2025.
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