Musk Needs To 'Navigate Brand Crisis Or Else,' Warns Analyst, Tesla 'Delivery Number Was A Disaster For The Bulls'

Core Viewpoint - Tesla is at a critical juncture following weaker-than-expected first-quarter deliveries, with significant challenges related to brand perception and leadership decisions impacting performance [1][2][3]. Group 1: Delivery Performance - Tesla reported approximately 337,000 vehicle deliveries in the first quarter, which fell short of analyst expectations, indicating weakness across key markets including China, America, and Europe [1]. - The first-quarter delivery figures are described as a "disaster" for bullish investors, reflecting continuous negativity surrounding the Tesla brand [2]. Group 2: Brand and Leadership Challenges - The brand crisis is attributed to CEO Elon Musk's increasing political involvement, which is seen as detrimental to Tesla's brand image [3]. - Protests at Tesla dealerships and concerns related to Musk's actions have contributed to ongoing negative sentiment towards the brand [3]. Group 3: Analyst Insights - Wedbush analyst Daniel Ives maintains an Outperform rating on Tesla with a price target of $550, despite acknowledging the significant challenges ahead [1]. - Ives emphasizes the need for Musk to address the brand crisis effectively, suggesting that failure to do so could lead to more difficult times for Tesla [4]. - The analyst views advancements in autonomous driving as a potential transformative opportunity for Tesla, positioning the company as a leader in the automotive industry [4]. Group 4: Stock Performance - Following the release of the first-quarter delivery figures, Tesla's stock experienced a decline, although it rose by 5.70$283.77 on the day of the report due to speculation about Musk's potential reduction in political involvement [5]. - Year-to-date, Tesla's stock is down 25.9% in 2025, reflecting broader market concerns [5].