Like many American manufacturers, Tesla is caught in a bind thanks to President Donald Trump’s trade war. Unlike most of those other companies, though, Tesla has an added wrinkle – its CEO, Elon Musk, sometimes called the First Buddy for the close relationship he’s cultivated with the president.

Wedbush Securities analyst Dan Ives said Elon Musk should step back from his controversial work at the Department of Government Efficiency and re-focus his attention on Tesla Inc., adding the electric-vehicle maker faces a “code red” moment as it prepares to report first-quarter earnings Tuesday.

Chief Executive Elon Musk should distance himself from his role in the Trump administration and refocus on the electric-vehicle manufacturer amid ongoing challenges, according to Wedbush Securities. The brokerage believes Musk faces a "code red situation" if he remains in his leadership post at the Department of Government Efficiency,