08:07 AM EDT, 03/20/2025 (MT Newswires) -- Tesla (TSLA) Chief Executive Officer Elon Musk must balance his involvement with the Department of Government Efficiency and provide a clear vehicle roadmap to prevent an escalating crisis, Wedbush analysts said in a note on Thursday.

Analysts said Musk's recent focus on DOGE has turned Tesla into a political symbol, negatively impacting the brand worldwide. The damage to the brand "has spread globally over the last few weeks into what we would characterize as a brand tornado crisis moment for Musk and Tesla," the analysts said.

Wedbush said Musk needs to do two key actions in the next few months to stabilize Tesla's brand and reassure investors. First, Musk should publicly commit to a clear balance between his DOGE activities and his responsibilities as Tesla's CEO. Musk must also provide investors with detailed guidance on the automaker's upcoming lower-cost vehicles expected to be released this year and clearly outline the timeline for the unsupervised FSD rollout set for June in Austin.

Wedbush maintained an outperform rating on Tesla with a $550 price target, remaining bullish on the company but warning that "Musk needs to change course here... Tesla's future depends on it."

Shares were 1% lower in recent premarket activity.

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