Tesla Inc. (TSLA) has long been a symbol of the most daring ambitions of Silicon Valley, a brand that revolutionized the automotive industry, redefined the clean energy and transformed its charismatic CEO Elon Musk into an almost mythical figure for investors and technology enthusiasts. However, now it seems that the same faith that has fueled his ascent is starting to crumble.

In a move that had a strong impact on Wall Street, the Wedbush Securities analyst, Dan Iats, one of the most constant long -term supporters of the company, reduced its price target at 12 months to Tesla by 43%, going from 550 dollars to $ 315. More significantly, Ives has reported something that once seemed unthinkable: that could completely leave Tesla if the current trends were to continue.

“We supported Musk and Tesla for over a decade,” Ives wrote in a research note sent to customers on Sunday. “But the current situation is simply unsustainable. The Tesla brand is suffering day after day while becoming more and more politicized.”

Tesla’s shares opened the courses on Monday falling by 6%, at around 239.43 dollars, after the report and in the midst of the volatility of the market generated by new concerns about the aggressive commercial policies of President Donald Trump, part of his economic agenda for the second term.

Ives’s clear change does not only concern the missed delivery objectives or the compression of the margins. At the center of his concern is what he defines a “brand crisis created by Musk” – a reputational spiral that is starting to alienate consumers, investors and even former allies.

Much of the concern derives from the increasingly tighter association of Musk with Trump and with the Department of Government Efficiency (Doge), a new federal task force in charge of reducing government waste, which Musk now guides. While Musk insists that his involvement concerns efficiency and technological modernization, the resulting image has become much more complex.

“Tesla has essentially become a global political symbol, and this is a very negative thing for the future of this disruptive technology,” Ives wrote. “This company once represented sustainability, innovation and progress. Now, in many international markets, it is seen as an arm of American political ideology.”

According to Ives’ analysis, Tesla’s politicization has already cost you at least 10% of her future base of global customers, with signals of negative reactions in European and Asian markets. What was once considered a luxury brand synonymous with green innovation, Tesla now risks becoming a target for political divisions, both nationally and internationally.

To further complicate Tesla’s problems there is a new wave of economic clutch between the United States and China. With the re -election of Trump at the end of 2024, the commercial tensions have rekindled, and new rates on the imported components – in particular in the automotive and technological sectors – are now in force.

Tesla, which depends heavily on supplies from global suppliers, is directly exposed. These new rates are expected to increase costs along its supply chain, compressing the margins at a time when inflation and competition are already eroding profits.

“The moment could not be worse,” Iats said. “Tesla must invest in growth, lower prices in the key markets and innovate. Instead, it is fighting against the increase in costs and against twenty geopolitical winds.”

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Analysts estimate that byd now exceeds Tesla in quarterly deliveries in China – a hard psychological and economic blow for the company.

The delivery numbers of the first quarter of Tesla have amplified Iats’s concerns. The company reported deliveries of 337,000 vehicles, well below the expectations of analysts. Although the interruptions in the supply chain and the seasonal weakness were partly responsible, the sub-contract was the last of a series of quarterly disappointments.

Wall Street had already reduced expectations for the first quarter, but Tesla still remained behind – suggesting that there may be deeper structural problems. The slowdown question, the growing competition and the impact of Musk’s controversial decisions are now under the microscope more than ever.

“Investors once gave Musk the benefit of doubt – now they don’t do it anymore,” said an institutional investor at CNBC. “Every false step is now a red flag, not a reason for patience.”

What makes this moment particularly significant is the identity of the analyst who launches the warning. Dan Iats has long been one of Tesla’s most important supporters. He was alongside the company during the difficult Ramp-up phase of the Model 3, he defended him during the 2018 “Funding Secured” and supported his long-term vision during the volatility of the pandemic era.

But this time, Ives is not just lowering expectations – is questioning the entire strategic direction of the company.

“This is no longer just a company story,” Iats said in an interview with Bloomberg. “It is a cultural and political story. Musk has intertwined Tesla in issues that go far beyond cars, software and batteries – and is now damaging the final result.”

The question is now if Elon Musk is willing – or even able – to bring out Tesla from this descending spiral. For years, the Musk brand and the Tesla brand were practically the same thing. His audacity, his frankness and his challenge to conventions helped Tesla to move from a niche startup to a company from trillion dollars.

But those same characteristics are now proving expensive.

Musk’s leadership of the Doge – despite being framed as a civic duty – has been widely criticized as a distraction from Tesla’s mission. Its continuous presence on politically charged platforms, the controversial comments on immigration, education and social policy, and the conflictual approach with the media and regulators are all having an impact on the public image of Tesla.

Some investors begin to wonder if Musk is still the right person to guide Tesla towards the future – or if the company would benefit from a clearer separation between his operating leadership and his political person.

Despite all this, Tesla remains a company with enormous resources – both tangible and intangible. His progress in autonomous driving, battery technology, energy storage and robotics fueled by the AI ​​are still years before compared to many competitors. It maintains a strong recognition of the brand, a solid infrastructure and a basis of faithful customer in many regions.

But the biggest question may no longer concern technology or innovation – but trust.

“Investors can bear volatility if there is a clear path,” said a portfolio manager of a large hedge background. “Now, with Tesla, the path is far from clear.”

With the intensification of competition, both by traditional car producers and the native startups of the EV, Tesla will have to do more than simply build excellent products. He will also have to reconstruct his public image, clarify his mission and decide what kind of company he wants to be in a world that is becoming increasingly politically and economically fragmented.

For now, one thing is clear: the honeymoon is over. And also the most faithful believers of Tesla – like Dan Ives – begin to look towards the door.