Elon Musk appeared to take issue with a suggestion from a well-known technology analyst that Tesla's board of directors reel in his political activities, posting on the social platform X that Dan Ives should "shut up" after Ives called for greater oversight of the billionaire CEO.
Early on July 8, Ives wrote on X that Tesla should curb Musk's political endeavors as part of a plan to get the company back on track.
On the surface, Tesla's groundbreaking electric vehicles and next-gen Powerwall — a battery storage solution to pair with solar — bode well for the company's prospects as a cleantech powerhouse. Yet Tesla has experienced a sharp decline in global EV sales over the first half of 2025, and its stock has struggled to maintain its value.
Analysts point to Musk's political forays as a key reason Tesla is beginning to lose ground to other EV makers, which are refining their offerings as consumers increasingly forgo gas-guzzling vehicles in favor of EVs.
EVs are more eco-friendly and cost-effective to own and operate. That's especially true if consumers install solar panels to charge their EVs at home. EnergySage saves purchasers up to $10,000 on installation costs, allowing them to rely on a clean, nonpolluting energy source that is cheaper than using public charging stations or the grid.
However, some people have become wary of Tesla, viewing their support for its technology as an endorsement of Musk's viewpoints or behavior, including his highly visible and often insult-laden social media feuds, and that has impacted the company's bottom line.
After Musk suggested on July 5 that he would launch a third American political party — reigniting his feud with President Donald Trump over the One Big Beautiful Bill Act, which the Congressional Budget Office estimates will add trillions to the national debt — Tesla shares dropped by 7% when the markets reopened.
A day after that plummet, in addition to suggesting the board should boost its "oversight on [Musk's] political endeavors," Ives called for a clearer path to a Tesla merger with xAI — a Musk-owned company — and "guardrails" tying the amount of time Musk spends with Tesla to his compensation.
Several hours later, Musk quoted Ives, telling him in no uncertain terms to muzzle himself. Nonetheless, Ives and other analysts believe this trio of actions is crucial to helping the company get back on track, alleviating investor concerns, and protecting shareholders.
"In a nutshell, we believe this is a tipping point in the Tesla story and ultimately the Tesla Board needs to act now and set the ground rules for Musk going forward around his political ambitions and actions," Ives wrote in a research note to investors, per CBS MoneyWatch.
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Yes 💯 "It is clear that Musk's attention has been divided for many months, which has already put pressure on Tesla's brand," Jo-Ellen Pozner, a professor at Santa Clara University's Leavey School of Business, added in an email to the publication.
"Nevertheless, Musk's intent to form a new political party creates a great deal of additional — and unnecessary — reputational risk," Pozner added.
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