Tesla (TSLA) Chief Executive Elon Musk needs to step back from political involvement and refocus on the company amid a sharp decline in its stock, Wedbush said in a report emailed Monday.

Over the past decade, Musk has repeatedly had to reshape Tesla's narrative during challenging times to reassure investors, Wedbush said. "The turnaround vision must start this Tuesday night on the earnings conference call for Musk and Tesla," it added.

Tesla has become a "political symbol" and that this association, coupled with recent poor delivery numbers and escalating global protests against Tesla dealerships and owners, has created a major crisis. The imposition of 25% auto tariffs, delaying the launch of lower-cost models, has further compounded the company's challenges, Wedbush said.

"We are now at a major crossroads for the Tesla story," Wedbush said, highlighting a potential 15% to 20% permanent demand destruction due to the brand damage. Musk must use Tuesday's call to outline Tesla's plans for full self-driving, affordable electric vehicles, and robotics-while addressing his political ties.

Despite these setbacks, the firm maintains a bullish outlook, citing Tesla's innovative technology, engineering scale, and potential in autonomous driving and robotics. However, it stressed that Musk must make significant changes to steer the company back on course.

Wedbush maintained an outperform rating on Tesla with a price target of $315.

Shares of Tesla were down more than 6% in recent Monday trading.

Price: 226.33, Change: -15.04, Percent Change: -6.23