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.

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.