Tesla Inc (NASDAQ:TSLA) analyst Dan Ives isn’t being quiet when it comes to CEO Elon Musk’s political drama, even though Musk directly told him to “shut up.”
What Happened: Tuesday on CNBC’s “The Exchange,” Ives stood firm on his call for the Tesla board to step up and take action as Musk continues to express discontent with the White House.
“This soap opera I think has taken on a life of its own … the board’s the only one that can step in to set guardrails,” Ives said on the show.
The longtime Tesla bull released a note earlier in the day calling on the Tesla board to “act now” and make sure Musk is focused on Tesla’s autonomous and robotics future instead of trying to create a new political party.
Musk continues to escalate his ongoing public dispute with President Donald Trump related to his disapproval of Trump's spending bill, which was signed into law on Friday.
Ives called on Tesla’s board to establish 25% voting control for Musk, which he believes would open the door to a potential merger between Tesla and Musk’s xAI. He also wants the board to set boundaries to determine how much time Musk spends at Tesla, which would include oversight of his political involvement.
Musk responded to an X post from Ives in Musk fashion.
“Shut up, Dan,” the Tesla CEO said.
Ives told CNBC that he saw the response, but that didn’t deter him from continuing the press the issue. Shareholder patience is wearing thin, and Musk is Tesla’s biggest asset. Given the direction the company is going with autonomous and AI, the company has never needed him more than it does now, he explained.
“Clock strike midnight, and this is the time for the board to lay out a plan for shareholders,” Ives said.
If xAI and Tesla were to merge, it could be a “game-changer” for the EV company’s robotaxi and humanoid robotics plans, he said, adding that he believes a potential merger would create an “AI stalwart.”
As the AI race continues to accelerate, Musk needs to devote his time and energy to Tesla, or the company will fall behind other major players in the AI space, he told CNBC. Ultimately, Ives believes Tesla is on a path to a market cap of $2 trillion. The company was valued at approximately $947 billion as of Monday’s close, according to Benzinga Pro.
Musk said in May that autonomous and robotics will “overwhelmingly dominate” Tesla’s future financial success. Tesla officially launched its robotaxis in Austin last month. The company reportedly halted its Optimus humanoid robot development last week, focusing instead on a redesign.
TSLA Price Action: Tesla shares were up 3.06% at $302.96 at the time of publication Tuesday, according to Benzinga Pro. The stock is down approximately 7% over the past month and has fallen 25% year-to-date.
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