In a tumultuous start to the year, Tesla, the electric vehicle (EV) pioneer, grappled with significant setbacks that sent shockwaves through the financial markets. The company’s first-quarter performance, characterized by a sharp decline in stock value and dismal delivery numbers, has prompted analysts to sound the alarm on what they deem an “unmitigated disaster.”

Dan Ives, Managing Director of Equity Research at Wedbush Securities, minced no words in his assessment of Tesla’s performance. “While we were anticipating a bad quarter, this was an unmitigated disaster,” he declared in a recent report.

Tesla’s first-quarter deliveries, which fell short of expectations, were labeled a “nightmare quarter” by Ives. The company’s CEO, Elon Musk, faced mounting pressure from investors amid soft demand in China, a critical market for Tesla’s growth ambitions.

“The big problem is deliveries,” Ives explained. “How do you reverse the trend? That’s why I believe this is a fork in the road. Musk either turns this around by cutting prices, implementing strategic changes, or risks darker days ahead.”

Despite the scathing critique of Tesla’s performance, Ives maintains an “outperform” rating on the company. He cites long-term prospects in the EV and autonomous driving sectors. “For the long term, the opportunity for EV, full self-driving, and autonomous technology remains intact,” he asserts.

However, Ives emphasized the urgency of Tesla articulating a clear strategy to address its challenges. “It’s playing darts blindfolded. You don’t have an adult in the room,” he remarked, referring to the lack of clarity surrounding Tesla’s future direction.

“The conference call we talked about here have been–so investors, they’re hoping in terms of that–what’s on the other side is, now in terms of the growth, the opportunity, $30 billion in cash, they’re in a phenomenal position from that perspective,” Ives added, acknowledging Tesla’s financial strength amid its operational challenges.

“This is what I said in the last five years, probably the darkest period relative to what we’re seeing in China and this quarter, exclamation mark,” Ives concluded, underscoring the severity of Tesla’s current predicament.

Amidst the gloomy outlook, Ives remains cautiously optimistic, citing the potential of EV and autonomous technology to drive long-term value. However, he warns that Tesla’s fate hangs in the balance, with the company at a critical juncture that will determine its future trajectory.

As Tesla grapples with the fallout from its turbulent first quarter, investors and industry observers closely watch how the company navigates the challenges ahead. With the stakes higher than ever, Tesla faces a pivotal moment that could shape its destiny for years.