Elon Musk lashes out at Tesla bull Dan Ives over board proposals: 'Shut up'

In a heated exchange on social media, Elon Musk, CEO of Tesla, responded sharply to Dan Ives of Wedbush Securities, telling him to "Shut up" after Ives proposed significant changes for the company's board. This interaction unfolded on Tuesday, following Ives' critical insights shared on X regarding Musk's recent political endeavors. Ives, known for his bullish stance on Tesla with a price target of $500, expressed concerns after Musk announced the formation of a new political entity named the America Party. This announcement came on the heels of a nearly 7% drop in Tesla's stock value, which resulted in a staggering loss of $68 billion in market capitalization. Ives suggested that Tesla's board should consider granting Musk 25% voting control, establish guidelines for his time commitment to Tesla, and provide oversight regarding his political activities. In a more comprehensive report, Ives and his colleagues emphasized the need for the board to intervene, citing Musk's political ventures as a potential turning point for Tesla. Despite the criticism, Wedbush maintained its optimistic price target and buy recommendation for the stock. Musk's terse response on X highlighted his defensive stance, especially given that Ives' proposal would actually fulfill Musk's long-desired control over voting at Tesla. In reaction to Ives' remarks, Musk dismissed them, asserting his own views on the situation. Ives later reiterated his position in an email, indicating that while Musk may have his opinions, the board should take a responsible approach. The conversation surrounding Musk's political involvement has intensified, with other analysts also expressing concern. For instance, William Blair downgraded Tesla's stock rating from buy to hold due to fears that Musk’s political activities might detract from his focus on the company's operational needs, particularly as it navigates critical stages like the robotaxi rollout. Additionally, James Fishback, the CEO of hedge fund Azoria Partners, stated that his firm had delayed plans for an exchange-traded fund focused on Tesla, emphasizing the need for the board to clarify Musk's political ambitions and their compatibility with his responsibilities as CEO. As Tesla's stock continues to struggle, down approximately 25% this year, many investors are left pondering the implications of Musk's political forays on the company's future. The ongoing tension between Musk's dual roles as a business leader and political figure raises questions about the direction Tesla will take amidst these challenges.