Tesla stock is down more than 50% from its December peak as Elon Musk’s company heads into an earnings report expected to bring its worst profit in four years.

Dan Ives, an analyst for Wedbush Securities and longtime Tesla bull who nonetheless recently slashed his price target for Tesla shares, said Musk is facing a “code red situation” if he continues his high profile role in the Trump administration.

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.