Musk's Political Involvement Weighs on Tesla

By ZeroHedge - Apr 21, 202

• Tesla will hold a company update alongside its Q1 2025 earnings call, where investors expect to hear about affordable EV plans and robotaxi developments.
• Tesla's first quarter earnings are projected to decline, with sales facing challenges and concerns growing over profit margins and the impact of trade tariffs.
• Elon Musk's political involvement is affecting Tesla's brand perception and potentially its customer base, adding to the challenges the company faces.

Tesla has set its Q1 2025 earnings call for Tuesday, April 22, at 4:30 p.m. CT / 5:30 p.m. ET. As usual, the event will be livestreamed, with a recording available later on Tesla’s website. The Q1 Update Letter will be released after markets close that same day.

This quarter, as multiple Tesla blogs like Teslarati have pointed out, Tesla is also adding a new element: a “Company Update.”

For the first time, the term appeared in both its vehicle delivery report and on the company’s official X account.

“In addition to posting first quarter results, Tesla management will hold a live company update and question and answer webcast that day,” the company stated.

Speculation is growing that Tesla may use the update to reveal more about its upcoming projects, particularly the affordable EVs teased in its Q4 2024 report: “Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025...”

Tesla’s Q1 2025 earnings are expected to show a 4.4% decline in profit to $0.43 per share, with revenue holding steady at $21.45 billion, according to FactSet.

Analyst estimates range from $0.30 to $0.51 per share, but consensus has dropped over 40% since late 2024. Piper Sandler warned the results will “likely underwhelm,” with margins “probably trending near multiyear lows.”

There's five things in particular investors will be looking for in this upcoming report and/or update, IBD noted this weekend.

Investor focus is shifting to Tesla’s promised robotaxi rollout. Musk has said paid rides would begin in Austin this June, but his past claims about autonomy have repeatedly fallen short. The latest FSD update shows modest progress, but it's still far from viable as a robotaxi platform.

The Cybercab—unveiled last year as a two-seater without a steering wheel—is supposed to launch before 2027 at under $30,000.

However, Reuters recently reported that Trump’s 145% tariff on Chinese goods has halted key parts shipments, possibly delaying both the Cybercab and Semi. The Cybercab’s cost-saving “unboxed” manufacturing method also remains unproven.

Tesla’s long-teased affordable EV. Reports suggest the first lower-cost option may just be a simplified Model Y, possibly arriving in 2025 or 2026. 

Vehicle sales for Q1 fell 13% year-over-year to 336,681. Growth is expected to stagnate this year, with consensus forecasting a modest 3% increase in deliveries, though some analysts now expect fewer sales than in 2024.

China sales rose slightly but remain low-margin, while U.S. and European demand has been hit by Musk’s controversial public profile.

While Tesla’s exposure to Trump’s tariffs is limited compared to other automakers, it still relies on Chinese suppliers for battery components, including CATL and BYD. Investors will be watching for updates on how Tesla plans to respond to trade tensions and cost pressures.

Musk’s political involvement is also on watch. He has been rumored to be finishing his work with DOGE by May and people are watching for a potential full-time return to Tesla.

IBD adds that a March YouGov/Yahoo News poll found 67% of U.S. adults wouldn’t consider a Tesla, with 37% citing Musk as the reason. Wedbush analyst Dan Ives, a longtime bull, cut his Tesla price target by 40%, calling the situation a “perfect storm” and estimating Tesla has lost at least 10% of its future customer base—potentially more than 20% in Europe.

Demonstrations at dealerships and reports of vandalism continue. Musk is reportedly planning to leave his White House role, but no timeline has been confirmed. Investors will be listening for any update on his level of involvement moving forward.

By Zerohedge.com 

Tesla bull Ives warns of ‘code red’ if Musk sticks with DOGE

By Bloomberg News 
April 21, 2025 


Wedbush Securities analyst Dan Ives said Elon Musk should step back from his controversial work at the U.S. Department of Government Efficiency and re-focus his attention on Tesla Inc., adding the electric-vehicle maker faces a “code red” moment as it prepares to report first-quarter earnings Tuesday.

“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Ives wrote in a report to clients Sunday. “Tesla is Musk and Musk is Tesla....and anyone that thinks the brand damage Musk has inflicted is not a real thing, spend some time speaking to car buyers in the U.S., Europe, and Asia. You will think differently after those discussions.”

Two weeks ago, Ives slashed his price target for Tesla’s stock by 43%, citing a brand crisis created by Musk and U.S. President Donald Trump’s trade policies. Ives’ biggest concern has been the potential for Tesla to get caught up in the backlash against Trump’s tariff policies in China, where the company generated more than a fifth of its revenue last year. Musk has also become the face of Trump’s efforts to slash the size and scope of the federal government, infuriating progressive consumers who are a key client base for the leading American electric vehicle maker.

“Tesla has unfortunately become a political symbol globally of the Trump Administration/DOGE,” wrote Ives. He then ticked off several points: Tesla’s stock has been crushed since inauguration, the company’s first-quarter delivery numbers were terrible and protests against Tesla continue. Tesla faces “potentially 15%-20% permanent demand destruction for future Tesla buyers due to the brand damage Musk has created with DOGE,” according to Ives.

Tesla shares have fallen 43% since Jan. 17. When the company reports earnings Tuesday, it will face questions about volume sales for 2025, progress on autonomous driving and plans for a robotaxi network, and how tariffs will impact profitability. Looming over everything is Musk’s role in the White House.

Musk, the world’s richest person, is a special government employee, a classification for temporary federal hires who are only supposed to work 130 days out of the year in their roles. Musk is expected to step back from his role once his 130-day period has lapsed, people familiar with the matter said earlier this month.


Ives said he remains bullish on Tesla, maintaining an outperform rating and calling it one of the “most disruptive technology companies on the globe over the coming years.” Yet he said Tesla needs its “most important asset” — Musk — back at the company full time.

“We view this as a fork in the road time: if Musk leaves the White House there will be permanent brand damage, but Tesla will have its most important asset and strategic thinker back as full time CEO,” wrote Ives. “If Musk chooses to stay with the Trump White House, it could change the future of Tesla/brand damage will grow.”

Dana Hull, Bloomberg News

©2025 Bloomberg L.P.