Investing.com-- Elon Musk’s potential decision to step back from his role at the Department of Government Efficiency (DOGE) could be "a very bullish sign"  for Tesla Inc (NASDAQ: TSLA ), Wedbush analysts said in a note.

Musk, who had been spearheading DOGE initiatives, is now expected to redirect his attention toward Tesla at a critical time for the electric vehicle maker, which faces mounting competition and shifting market dynamics, Wedbush analysts noted.

"Our view is this situation is not sustainable and the longer Musk stays at DOGE this adds more risk to the Tesla story and could face permanent brand damage,” analysts wrote.

Wedbush described Musk’s potential move as “the last chapter” of Musk’s government-related endeavors, calling his return to Tesla’s core business “a very bullish sign.”

The brokerage reiterated its “Outperform” rating on Tesla, citing expectations that Musk’s renewed focus could drive innovation and operational efficiencies.

"We remain firmly bullish on the long-term Tesla story but Musk needs to get his act together or else unfortunately darker times are ahead for Tesla with today’s (Wednesday’s) disaster 1Q delivery number a stark reminder," Wedbush analysts added.

Musk has yet to comment publicly on his exit from DOGE.