Tesla Crisis Deepens Amid Musk's Government Role

Tesla is facing a major crisis as it prepares to report quarterly earnings, with shares down 43-45% year-to-date and Q1 deliveries experiencing a record 13% year-over-year decline. Analysts, including Dan Ives of Wedbush Securities and others, warn that CEO Elon Musk's involvement as head of the Trump administration's Department of Government Efficiency has damaged Tesla's brand and could permanently reduce vehicle demand by up to 20%. Musk's political role has made Tesla a global political symbol, particularly during escalating trade tensions with China, and has alienated key customer segments. In response to mounting pressure, Musk has scheduled a live company update alongside earnings, breaking with normal protocol in an effort to restore confidence. While some analysts remain bullish on Tesla's long-term technological prospects, they stress that Musk must return as a full-time CEO to safeguard the company's future. The forthcoming earnings call is seen as a critical turning point for both Musk and Tesla.