Wedbush Securities analyst Dan Ives is sounding another loud alarm bell for Tesla Inc., warning that CEO Elon Musk faces his own fork in the road as the electric vehicle maker 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,” wrote Ives 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 US, Europe, and Asia...you will think differently after those discussions.”

Two weeks ago, Ives slashed his price target for the stock by 43%, citing a brand crisis created by Musk and US 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 on Sunday. 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,” Ives said.

Tesla shares have fallen 43% since January 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.

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.”