Tesla stock is down more than 50% from its December peak as Elon Musk’s company heads into an earnings report expected to bring its worst profit in four years.

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."

Tesla Inc. shares fell on renewed questions over Elon Musk’s role with the federal government and uncertainty over the company’s plans to introduce a lower-cost electric vehicle.