Tesla CEO Elon Musk sharply told Wedbush Securities analyst Dan Ives to “Shut up” on Tuesday after Ives publicly offered three recommendations to Tesla’s board regarding Musk’s role and political activities.
Dan Ives, one of Tesla’s most bullish analysts with a $500 price target on the stock, called for the board to create a new pay package that would give Musk 25% voting control and clear a path for merging Tesla with Musk’s AI company xAI. He also urged the board to establish limits on how much time Musk spends away from Tesla and to provide oversight on his political endeavors. Ives described Musk’s formation of the America Party as a “tipping point,” pushing for the board to take action to “end the soap opera” around the CEO.
Musk’s Reaction and Ives’ Response
Despite the first recommendation aligning with Musk’s long-sought voting control, Musk responded bluntly on X, writing, “Shut up, Dan.” Ives later told CNBC he respects Musk’s opinion but stands by his advice to the board.
Tesla’s 2018 CEO pay package, valued around $56 billion, was voided last year by a Delaware court due to concerns about board independence. Tesla has appealed and is still determining Musk’s next compensation plan.
Other analysts have voiced similar concerns. William Blair downgraded Tesla to a hold, citing Musk’s political distractions and the potential negative impacts of the recent spending bill on Tesla’s margins and EV sales. Hedge fund CEO James Fishback postponed launching a Tesla-focused ETF, saying Musk “has gone too far” and urging the board to assess whether Musk’s political ambitions align with his CEO duties.
Tesla’s stock has fallen about 25% this year, lagging behind major tech indexes. Musk has been politically active recently, working with the Trump administration before a public spat over the spending bill.
Author’s Opinion
Elon Musk’s political ventures might grab headlines, but they risk distracting from Tesla’s critical business goals. Investors and staff need steady leadership and clear focus, especially with Tesla navigating key product launches and market pressures. The board must balance Musk’s ambitions with the company’s long-term success, ensuring political distractions don’t slow innovation and growth.
