One of the best-known Tesla analysts laid out a plan for the electric and self-driving vehicle giant’s board to curb the firm’s controversial CEO Elon Musk, the latest evidence of Wall Street growing fed up with Musk’s non-Tesla actions, including an ugly spat with President Donald Trump.
Key Takeaways
- Tesla’s board “needs to act now and set the ground rules for Musk going forward around his political ambitions and actions,” wrote Wedbush analyst Dan Ives in a Tuesday morning note to clients.
- Ives, whose criticism is particularly notable since he’s the most bullish on Tesla stock of any of the 55 analysts tracked by FactSet, laid out a three-pronged recommendation for the board.
- They should approve a new compensation package that would roughly double Musk’s voting rights at the company to 25%, simultaneously setting a provision on exactly how much time Musk is required to spend at the company—a long-desired policy by many investors because Musk dedicated much of his time in recent years to right-wing politics, social media and his private companies.
- Most crucially, Ives recommended what amounts to a babysitting group for the 54-year-old Musk.
- The board should “create a special Board oversight committee for Musk around his political ambitions and ground rules that would violate his pay package,” suggested Ives.
Chief Critic
Musk took issue with the suggestion he needs close supervision, replying to Ives’ post on his X social media site: “Shut up, Dan.”
Tesla Stock Rebounds
Shares of Tesla rose 3% by midday Tuesday, but remained down about 10% since Musk began to publicly go after Trump last month. The stock tumbled 6% Monday as investors reacted to Musk’s launch of a new political party, leading to a $12 billion drop in Musk’s net worth.
Forbes Valuation
With a $398 billion fortune, Musk is still more than $100 billion richer than any other person, according to our most recent estimates. Musk’s existing 13% stake in Tesla accounts for $124 billion of his fortune, while his bonus amounting to 9% further equity in the company, which Forbes discounts at a 50% rate in its net worth calculation, is worth another roughly $40 billion. His stakes in the private aerospace and satellite internet provider SpaceX and the generative artificial intelligence startup xAI comprise a majority of his remaining riches.
Who Is On Tesla’s Board?
Tesla has a nine-person board of directors, including Musk and his brother Kimbal Musk. The seven non-Musk directors are chair Robyn Denholm, billionaire Airbnb cofounder Joe Gebbia, media mogul Rupert Murdoch’s son James Murdoch, former Chipotle chief financial officer Jack Hartung, early Tesla investor Ira Ehrenpreis, former Walgreens Boots Alliance executive Kathleen Wilson‑Thompson and former Tesla executive J. B. Straubel.
Key Background
Musk has long held roles outside of Tesla, but the issue began to crest in 2022 when he purchased the social media company then known as Twitter for $44 billion, selling off a sizable chunk of his Tesla stake to finance the deal. Over the last three years, Musk’s activities away from Tesla have grown increasingly controversial, including donating $288 million to help elect Trump in 2024, making a gesture at Trump’s inauguration some characterized as a Nazi salute and falling out with Trump in a saga that included Musk accusing Trump of having a nefarious connection to the late convicted sex offender Jeffrey Epstein. Most importantly for Tesla’s board and investors, Musk’s stirring actions directly hit Tesla’s sales, as the company suffered double-digit annual declines in vehicle deliveries during each of 2025’s first two quarters.
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