Elon Musk Responds to Wedbush Analyst Dan Ives’ Call for Oversight of Tesla’s Political Activities

This article does not constitute investment advice. The author does not hold any positions in the stocks mentioned.

Elon Musk Faces Criticism from Wedbush Analyst Over Political Engagement

Elon Musk, the CEO of Tesla, recently found himself in the spotlight after a public exchange with Wedbush analyst Dan Ives, who suggested that Musk’s compensation should be linked to the time he devotes to Tesla, especially in light of concerns regarding Musk’s political engagements. Ives has expressed apprehension that Musk’s focus may be split between his political pursuits and the various companies he oversees, leading to questions about his effectiveness as a leader at Tesla.

This tension escalated after Ives highlighted a critical juncture for Tesla in April, suggesting that urgent action was needed to steer the company away from potential pitfalls. Year to date, Tesla’s stock has declined by 20%, struggling amidst disappointing delivery numbers and Musk’s ongoing controversial interactions with political figures, notably former President Trump. While a momentary relief came after Musk’s vows to reduce his political involvement and the announcement of Tesla’s robotaxi initiative, ongoing friction with Trump and new reports of robotaxi complications have reinvigorated concerns regarding the company’s trajectory.

Ives, a notable advocate for Tesla on Wall Street, has maintained a critical stance towards Musk throughout 2025. He emphasized the urgency of the situation in April, articulating that while he remains optimistic about Tesla, the brand’s political symbolism appears to be faltering, which could render the current situation untenable. This sentiment was reflected in his adjusted price target for Tesla shares, which dropped from $550 to $315, indicating a 47% decrease.

Following these insights, Ives took to X to reiterate his perspective, suggesting that Tesla should offer Musk a revised pay structure that awards him 25% control to facilitate a merger with xAI, Musk’s artificial intelligence venture. Given Ives’ past comments on the potential of AI and self-driving technology as critical factors for Tesla’s growth, his recommendations carry significant weight in the financial community.

Moreover, Ives proposed establishing “guardrails”on the amount of time Musk allocates to Tesla as part of any new compensation agreement. He further contended that there should be “oversight on political endeavors, ”referencing Musk’s recent announcement of a political party in the United States and the implications this could have on his commitments at Tesla.

Musk’s response to Ives’ comments was dismissive, where he simply stated, “Shut up, Dan.”Despite this exchange, Ives chose not to engage further directly with Musk and indicated that he would elaborate on Tesla and his insights later in the day.

Meanwhile, Tesla’s second-quarter deliveries reflected another year-over-year decline, disappointing many of the company’s critics. While some analysts have linked the sales slowdown to Musk’s political engagements and production challenges, Musk attributed the difficulties to retooling efforts, asserting that the firm’s future should pivot towards advancements in humanoid robotics.

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