Tesla CEO Elon Musk fired back at Wedbush Securities analyst Dan Ives on Tuesday after Ives made public recommendations to the Tesla board in response to Musk’s recent political activities. Ives, who has historically been one of Tesla’s biggest Wall Street supporters with a $500 price target—the highest among analysts tracked by FactSet—voiced concerns about Musk’s creation of a new political party.
This follows Musk’s announcement over the weekend that he is forming the “America Party” to oppose Republican lawmakers who supported a recent Trump-backed spending bill.
Stock Plunge Triggers Demands for Board Oversight Amid Musk’s Political Distractions
The timing of Ives’ critique coincided with a sharp drop in Tesla’s stock, which fell nearly 7% on Monday, erasing $68 billion in market capitalization. In response, Ives urged Tesla’s board to take three key actions: give Musk a new pay package that restores 25% voting control (enabling a merger with his AI company xAI), set limits on how much time Musk devotes to Tesla, and enforce oversight on his political activities.
He later expanded on these points in a more detailed report titled, “The Tesla board MUST Act and Create Ground Rules For Musk; Soap Opera Must End.” Despite his criticisms, Ives maintained a “buy” rating on Tesla stock.
Musk Tells Analyst to ‘Shut Up’ After Tesla Stock Tanks Amid Political Party FalloutMusk dismissed Ives’ suggestions with a blunt “Shut up, Dan” on X, formerly Twitter. Ironically, one of Ives’ suggestions—granting Musk more voting control—is something the CEO has long pursued. The incident underscores a growing tension between Musk’s political ambitions and investor concerns about corporate governance.
A previous $56 billion compensation plan awarded to Musk in 2018 was recently voided by a Delaware court due to a lack of board independence and proper negotiation. Tesla has appealed that ruling, and discussions are ongoing about a revised compensation package.
Mounting Investor Pressure as Musk’s Political Ambitions Spark Downgrades and Strategic Concerns
Ives isn’t alone in voicing concern. William Blair analysts downgraded Tesla’s stock due to Musk’s increasing political involvement and the possible negative financial impacts of recent legislation. They stated that Musk’s political distractions come at a critical time for Tesla, particularly as the company prepares to roll out its highly anticipated robotaxi initiative.
Similarly, James Fishback, a Musk supporter and CEO of Azoria Partners, postponed the launch of a Tesla-focused ETF, stating that Musk had “gone too far.” Fishback also called on the Tesla board to evaluate whether Musk’s political ambitions align with his responsibilities as CEO.
Tesla’s stock has fallen about 25% in 2025, underperforming major U.S. indexes and tech peers. Musk’s alignment with Trump earlier in the year, followed by a sudden political rift and his push to shrink the federal government, has only fueled investor uncertainty.
With stakeholders like Fishback and analysts across the board urging more clarity and direction from Musk, pressure is mounting on Tesla’s board to act. Despite repeated calls for comment, neither Musk nor Tesla representatives have addressed the growing concerns publicly.
