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.

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."