Wall Street Analyst Slams Elon Musk’s Return to Tesla: "Irreversible Damage Has Been Done"

Elon Musk , who leads the beleaguered company electric vehicle maker Tesla indicated earlier this week his intention to withdraw from political activities and concentrate on revitalizing the faltering brand.

However, an influential and dedicated Tesla supporter suggested that the company’s reputation might be “damaged irreparably” both within the United States and internationally. according to CNN This has raised concerns that harm to the brand might deter consumers from transitioning to eco-friendly electric vehicles.

What's happening?

In an earnings call on Tuesday, Musk told investors that he plans for his involvement with the contentious Department of Government Efficiency to "decrease considerably" beginning in May, according to reports. CNN .

Musk's choice to reduce his involvement with DOGE came after a crushing setback. first quarter For Tesla, this also marked the biggest decrease in quarterly sales ever recorded for the brand. During Q1, they experienced an enormous 71% fall in sales compared to the previous year’s first quarter. TechCrunch reported.

Dan Ives from Wedbush Securities typically maintains an optimistic stance regarding Tesla's stock. However, in a client memo released on Wednesday, Ives expressed unusually pessimistic opinions about the company’s future prospects.

According to CNN Ives forecasted that Musk’s anticipated comeback wouldn’t be enough to compensate for the “brand harm he inflicted…over recent months.” According to Ives, Musk’s engagement in American politics was mainly responsible for Tesla’s declining sales, and he suggested that “a portion of this damage will remain indelibly marked in both Europe and the U.S.”

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Gordon Johnson from GLJ Research was much more pessimistic, informing CNN that "[Musk] has caused damage that is completely irreparable."

Why should we be worried about Tesla's declining success?

Although Tesla's electric vehicle market share has decreased from 80% in 2019, the company still held slightly more than 45% of the market as of February, according to reports. Edmunds .

Tesla's steep decline In terms of popularity, it is worldwide, and the brand's prominent position along with its sudden decline — paired with the uncertainties brought about by fluctuating tariff policies — raised concerns that the firm's issues might have adverse effects on the broader EV market .

However, Reuters Recently mentioned that global electric vehicle sales increased by 29% compared to last year in March, suggesting that the demand for EVs has not started to wane yet.

How do you feel about Tesla and Elon Musk?

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What actions can electric vehicle drivers take?

Despite Tesla's fluctuating reputation, the demand for electric vehicles keeps increasing — and on top of that, vehicle prices are rising as well. used Teslas seem to be lower than ever before.

A lively marketplace has led to the emergence of platforms like Recurrent , which links buyers and sellers interested in entering or exiting the electric vehicle market.

Beyond the borders of the U.S., the electric vehicle manufacturer from China BYD has seen booming sales in the wake of Tesla's ongoing decline, particularly in the Australian market.

U.S. customers looking to make the switch switch to an EV offer an extensive range of options, including well-known labels such as Hyundai and Kia's Electrified models are gradually eroding Tesla's currently predominant market share.

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A Wall Street analyst delivers a shocking statement following Elon Musk's comeback at Tesla: 'The harm... is completely irreparable.' first appeared on The Cool Down .