Ahead of a crucial earnings report, Elon Musk is under pressure to choose between Tesla and DOGE.Wedbush analyst Dan Ives warned Tesla faces a "code red" if Musk doesn't step back from his government role.

Tesla reports earnings; that afternoon, Musk will take questions from investors. But there is a catch-22: If Musk continues his close ties to Trump, the company could

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."