Elon Musk Clashes with Analyst Dan Ives Over Tesla Board Proposals. Elon Musk, Tesla’s CEO, sharply rebuked Wedbush Securities analyst Dan Ives on July 8, 2025. Musk told Ives to “Shut up” on X after Ives proposed three steps for Tesla’s board.Ives, a longtime Tesla bull, suggested a new pay package giving Musk 25% voting control, time “guardrails” for Musk’s Tesla duties, and oversight of his political activities.
The clash followed a 6.79% drop in Tesla’s stock on July 7, erasing $68 billion in market cap. See the finance card above for details.
Ives’ recommendations came after Musk announced plans to form the America Party. This move sparked investor concerns about Musk’s focus.
Musk’s political activities, including his America Party plan, have drawn criticism. Ives called it a “tipping point” for Tesla, urging board action.
Despite the rebuke, Ives stood firm. In an email to CNBC, he said, “Elon has his opinion, but we stand by what the board should do.”
Why the Tension?
Ives has been Tesla’s biggest cheerleader, with a $500 price target, the highest tracked by FactSet. Yet, he’s worried about Musk’s distractions.
Musk’s announcement of the America Party followed a public spat with President Trump. It alarmed investors, as Tesla’s stock fell nearly 7% on July 7.
Ives’ note, titled “The Tesla Board MUST Act,” called Musk’s political moves a “soap opera” that must end. Wedbush kept its buy rating, though.
Other analysts echoed Ives. William Blair downgraded Tesla to a hold, citing Musk’s politics and a spending bill’s impact on EV sales.
Musk’s Political Moves Spark Backlash
Musk’s America Party aims to “give Americans back your freedom.” Details remain vague, with no clear funding or candidate plans.
This follows Musk’s work with the Trump administration, leading the Department of Government Efficiency (DOGE) until May 2025. His exit led to tensions with Trump.
Investors are frustrated. James Fishback of Azoria Partners delayed an ETF launch, urging Tesla’s board to review Musk’s political ambitions.
On X, sentiment reflects exhaustion. One post said, “Musk’s political gamble is causing investor frustration. The board needs to step in.
”Tesla’s stock has struggled, down about 25% in 2025. It’s the worst-performing megacap tech stock, per the finance card above.
Musk’s Pay Package Controversy
Ives proposal included a new pay package for Musk, voided in 2024 by a Delaware court. The $56 billion package was ruled unfair due to board conflicts.
Tesla is appealing to the Delaware Supreme Court. Ives suggested a new package to secure Musk’s 25% voting control, aligning with his xAI merger goals.
Musk’s response, “Shut up, Dan,” ignored Ives’ support for his voting control. It highlighted Musk’s resistance to board oversight.
Analysts like Ives want Musk focused on Tesla’s robotaxi rollout and AI ventures. Political distractions, they argue, harm Tesla’s brand.
Tesla’s Challenges Mount
Tesla faces a “code red” situation, Ives warned earlier in 2025. He cited brand damage from Musk’s DOGE role and political stances.
William Blair noted investors are “tired of the distraction.” They want Musk focused on Tesla’s autonomous driving and low-cost vehicle plans.
The spending bill, backed by Trump, could hurt Tesla’s margins. This adds pressure as Tesla trails rivals like BYD in sales.
X posts reflect investor concern. One user wrote, “Tesla’s valuation is hype, not fundamentals. Musk’s politics are tanking it.”
What’s Next for Tesla?
Tesla’s board, led by Robyn Denholm, has stayed silent. Treasury Secretary Scott Bessent suggested they intervene, per Fortune.
Ives urged action to set “ground rules” for Musk. He sees the board as key to refocusing Musk on Tesla’s goals.
Musk’s America Party plans remain unclear. Without details, investors worry about further stock volatility, as seen in the finance card above.
Tesla’s robotaxi rollout, set for summer 2025, is critical. Investors want Musk’s full attention to compete in the EV market.
Elon Musk’s sharp response to Dan Ives highlights tensions over his political ventures. Ives’ board proposals aim to refocus Musk on Tesla’s priorities. With the stock down 25% in 2025, investors are frustrated by Musk’s America Party plans. The board’s next moves could shape Tesla’s future amid growing challenges.
