Tesla Inc., once a symbol of technological innovation and a favorite brand among environmentally conscious consumers, is currently navigating a significant business and identity crisis.

The company, led by CEO Elon Musk, has reported the largest decline in stock value within the S&P 500 index since the beginning of the year, resulting in losses of market share and eroding investor confidence.

Dan Ives, an analyst at Wedbush Securities, has commented on the situation, stating, "Let’s call a spade a spade: Tesla is going through a crisis, and there is only one person who can fix it — Musk." He emphasized the intertwined nature of Tesla's identity with that of Musk, stating, "Tesla is Musk, and Musk is Tesla.

They are synonymous and cannot be separated."

Ives, a long-time supporter of Tesla’s potential on Wall Street, has publicly criticized Musk’s management, accusing him of spending too much time on cryptocurrency and his social media platform, X (formerly Twitter), instead of focusing on the company’s operational needs.

Amid these concerns, Tesla faces multiple challenges, including a decline in global sales, the collapse of the used vehicle market in the United States, and a recall of its Cybertruck due to technical issues related to the vehicle's external cladding.

The company was also removed from the International Auto Show in Vancouver citing unspecified safety concerns.

Alarmingly, an analysis revealed approximately $1.4 billion was unaccounted for in Tesla's balance sheet.

Investor Ros Gerber, founder of Gerber Kawasaki Wealth and Investment Management, indicated that Musk's recent actions could have further alienated customers, suggesting it may be time for the company’s board to consider appointing a new CEO.

Tesla's crisis extends beyond financial matters; it is also grappling with an identity crisis.

Once viewed as a progressive brand aligned with urban middle-class ideals, it has increasingly become associated with conservative and authoritarian movements in the U.S. This shift has led to boycotts, protests, and acts of vandalism aimed at the company, impacting market perceptions.

Ives warned, "The social backlash against Musk is no longer just symbolic — it brings tangible business risks and affects stock value."

In response to the company’s deteriorating image, political figures have attempted to intervene, though with limited success.

U.S. Secretary of Commerce Howard Lutnick publicly urged citizens to buy Tesla vehicles during an appearance on Fox News, raising ethical concerns about public officials endorsing specific companies.

Despite these efforts, Tesla's shares dropped by 1.7% in pre-market trading, with a minimal afternoon correction of only 0.17%.

Former President Donald Trump, known for his skepticism towards electric vehicles, also promoted Tesla models during a White House event.

While this engagement temporarily boosted stock prices, the effects were short-lived.

In an internal meeting broadcast via X, Musk acknowledged that Tesla is experiencing "some turbulent times," urging employees to hold onto their shares while asserting that the company remains on track to produce fully autonomous vehicles.

Unlike in 2018, when Musk took a hands-on role during the Model 3 production issues, he is now perceived more as a political entrepreneur than as an executive focused on technological advancements.

With approximately 13% ownership in Tesla, Musk's reduced involvement in daily operations raises questions about whether his political aspirations have overshadowed the automotive company that propelled him to become one of the world's most recognized and wealthiest individuals.