Elon Musk needs to explain the latest layoffs at next week's earnings to soothe investors amid a 'horror show' for Tesla, Wedbush's Dan Ives says

• Elon Musk has some explaining to do at next week's earnings call, Wedbush's Dan Ives said.

• The last few months have been a "horror show," with the carmaker announcing fresh layoffs on Monday.

• "We need to hear the rationale for the cost cutting, the strategy going forward, product roadmap, and an overall vision from Musk."

Elon Musk needs to explain the latest layoffs at Tesla in order to regain investor confidence after an intensely difficult few months for the electric car company, according to Wedbush analyst Dan Ives.

Ives pointed to Monday's announcement of job cuts at Musk's carmaker, with Tesla laying off 10% of its global staff on, per a memo seen by Business Insider. Those cuts come shortly after the company posted disappointing figures over the past quarter, with deliveries sliding 20% from levels last year.

Amid the layoffs, high profile executive including Drew Baglino, Tesla's former senior vice president of powertrain and electrical engineering, and Rohan Patel, Tesla's former vice president of public policy and business development, have also departed.

The loss of Baglino in particular, is an "absolute gut punch" for Tesla, Ives said, given his involvement in developing Tesla's Model 2.