Assuming Musk actually does ditch DOGE (this administration has not been big on following federal laws, after all), he’ll be leaving his new mess for an old one. Tesla is staring down a potential crisis, in no small part because of how badly Musk’s behavior has damaged the brand.

Wedbush analyst Dan Ives, a longtime Tesla bull, said on Monday that Musk faces a "code red situation" if he doesn't start to distance himself from Trump and DOGE. In a recent research note, Ives wrote that Tesla could face "potentially 15%-20% permanent demand destruction ... due to the brand damage Musk has created with DOGE."

An analyst from Wedbush Securities has warned that Tesla will be destroyed if CEO Elon Musk continues working at the Department of Government Efficiency (DOGE). Dan Ives said that Musk should leave government or take a major step back from DOGE and focus on his flailing electric car company,