Dan Ives, a leading Tesla (NASDAQ: TSLA) bull on Wall Street, has suggested that it’s time for the company’s board to take action to rein in CEO Elon Musk’s increasing political focus.The call comes just days after Musk revealed plans to launch a new political movement dubbed the “America Party,” a move seen as diverting his attention from Tesla’s critical business roadmap. The renewed political focus rattled investors, sending TSLA shares down nearly 7% to $293.94 at close of the Monday trading session. TS ...

Core Viewpoint - Wall Street is increasingly frustrated with Tesla CEO Elon Musk's non-Tesla activities, prompting calls for the company's board to impose restrictions on his political ambitions and actions [1][2]. Group 1: Recommendations for Tesla's Board - Wedbush analyst Dan Ives, a prominent Tesla stock bull, suggests a three-pronged approach for the board to manage Musk's involvement in politics and ensure he dedicates adequate time to Tesla [2][3]. - The recommendations include approving a new compensation package that would double Musk's voting rights to 25% while establishing a requirement for the amount of time he must spend at the company [3][4]. - Ives proposes the creation of a special oversight committee to monitor Musk's political activities and enforce rules that could impact his compensation [4]. Group 2: Stock Performance and Market Reaction - Tesla shares experienced a slight rebound of 1% in premarket trading, but have declined over 10% since Musk's public disputes with President Trump [5]. - The stock fell by 6% on Monday following Musk's announcement of a new political party, resulting in a $12 billion decrease in his net worth [5].

It's been a tough past year or so for Tesla (TSLA -6.72%) operationally. Its core electric vehicle (EV) business has been struggling. Automotive revenue dropped 20% year over year in the first quarter. Meanwhile, deliveries have now fallen for two straight quarters, including a 14% decline in the second quarter. Tesla is dealing with issues on multiple fronts. In China, the world's largest EV market, it is seeing rising competition from local automakers. The same is also true in the U.S.CEO Elon Musk also i ...

Core Insights - Tesla CEO Elon Musk launched a new political organization called the "America Party," leading to a nearly 7% drop in Tesla shares, equating to a loss of approximately $21 per share [1] - Musk's net worth decreased by $15 billion, although he remains the wealthiest individual [2] - Tesla has experienced consecutive quarterly declines in vehicle deliveries in 2025, marking its worst performance since 2022 [3] Market Reaction - The market's response to Musk's political moves has been negative, with analysts noting that investors disapprove of his political engagement [4] - Tesla stocks have declined by 31% since Trump's inauguration, contrasting with a 4% gain in the S&P 500 during the same period [2] Analyst Opinions - Analysts from Wedbush Securities expressed that Musk's political involvement is contrary to the interests of Tesla investors [9] - William Blair analysts indicated that investors are fatigued by Musk's distractions and would prefer his focus on the robotaxi rollout, downgrading Tesla from "buy" to "hold" due to regulatory challenges [10] Public Perception - A recent poll indicated that the unfavorable view of Musk among Americans rose to 55% from 45% at the end of 2024, reflecting a trend across political affiliations [11] - Some believe that Musk's potential departure from Tesla to pursue politics could be beneficial, as it may alleviate concerns about founder risk [12]

Group 1: Ark Invest and ETF Performance - Ark Innovation ETF (ARKK) has returned nearly 60% over the past year through June 30, significantly outperforming the Nasdaq Composite's 15.7% return [1] - The fund's largest position is Tesla, with approximately 2.1 million shares valued at over $630 million, representing 9.6% of the fund's assets [2] Group 2: Tesla's Financial Performance - Tesla's stock gained 62.5% in 2024, outperforming the S&P 500's total return of 25% and the Nasdaq Composite's total return of 29.6% [3] - Tesla's automotive revenue fell 6% to $77.1 billion in 2024, while total revenue from automotive and services dropped 3% to $87.6 billion [4] - The energy generation and storage segment saw a 67% increase in revenue to $10.1 billion, contributing about 10% to Tesla's total revenue [5] Group 3: Market Challenges and Competition - Tesla's stock has declined by 21.9% through July 2, lagging behind the S&P 500's gain of 6.8% [6] - Recent tax and spending legislation eliminates federal tax credits for electric vehicles and solar energy systems, potentially increasing costs for consumers [7] - Competition from companies like BYD has intensified, impacting Tesla's sales and revenue, with a 20% drop in automotive revenue to $14 billion in Q1 [8] Group 4: Future Prospects and Innovations - Tesla delivered approximately 384,000 cars in Q2, down from over 422,000 in the prior-year period, indicating ongoing sales pressure [9] - The company is investing in new technologies, including the fully autonomous Cybercab, which is set to go into production next year, although the market for such vehicles presents challenges [10] - Despite Elon Musk's track record, Tesla's high valuation, with a price-to-sales ratio of 11.6 and a price-to-earnings ratio of 173, raises concerns about future performance [11]

Core Viewpoint - Elon Musk's renewed political engagement has led to a significant decline in Tesla's stock, with shares falling over 7% as investors express concern over his focus on politics rather than the company's performance [1][2]. Group 1: Stock Performance - Tesla's stock has declined 22% this year, and the recent political developments have exacerbated investor concerns [2]. - In the four weeks following Musk's announcement to focus on Tesla instead of DOGE, the stock rose 40%, indicating a correlation between Musk's focus and stock performance [6]. - Historical data shows that Tesla shares tend to fall when Musk is involved in political matters, while they rise when he is committed to Tesla [5]. Group 2: Investor Sentiment - Analysts from William Blair expressed that investors are growing weary of Musk's distractions at a critical time for the business [3]. - Dan Ives from Wedbush Securities noted that Musk's political move has taken a turn for the worse, suggesting that investors prefer his focus to be on the robotaxi rollout [4]. - Shareholders have voiced concerns about Musk's political ambitions, with some calling for the board to evaluate his compatibility with his CEO responsibilities [12][13]. Group 3: Political Developments - Musk announced the formation of a new political party, "the America party," which aims to challenge both Republicans and Democrats [1][7]. - This political engagement has raised questions about Musk's future as Tesla's CEO, with some stakeholders urging for clarity on his political ambitions [12][13].

Group 1 - Elon Musk announced the launch of a new political party called the "America Party" to challenge the existing Republican and Democratic parties, which has led to a decline in Tesla shares [1][3] - A poll posted by Musk on X indicated that a majority of respondents supported the idea of the America Party, with a two-to-one margin favoring independence from the two-party system [2][3] - Following Musk's announcement, Tesla shares dropped as much as 7.7% on Monday, reflecting investor concerns over his political involvement and its potential impact on the company [3][9] Group 2 - Musk has been critical of the GOP's One Big Beautiful Bill Act (OBBBA), labeling it as a "massive, outrageous, pork-filled Congressional spending bill" that could harm future industries, particularly renewable energy [6][9] - Year-to-date, Tesla's stock has decreased over 22%, attributed to protests and consumer boycotts related to Musk's political actions and his previous role in the Trump administration [9] - Analysts, including Dan Ives from Wedbush Securities, suggest that Musk's renewed political engagement is counterproductive for Tesla during a crucial period for the company, leading to investor exhaustion [12][13][14]

Core Viewpoint - Tesla's shares have sharply declined by over 7%, resulting in a loss of approximately $71 billion in market value, due to concerns over Elon Musk's political distractions and his deteriorating relationship with Donald Trump [1][10]. Group 1: Stock Performance and Market Impact - Tesla's stock has faced pressure since Musk's association with Trump, particularly after the formation of the DOGE department aimed at reducing federal costs [2]. - The stock has trended lower since December, with a 35% decline from its peak, exacerbated by tariff disruptions and a backlash against Musk's political involvement [13]. - The recent political tensions have led to investor concerns about potential impacts on Tesla's government subsidies and Musk's focus on the company [14][15]. Group 2: Political Dynamics - Musk has publicly opposed Trump's recent tax cut and spending plans, which has contributed to the souring of their political relationship [3][4]. - Following the passage of Trump's bill, Musk initiated a poll on his platform regarding the creation of a new political party, which received 65.4% support [7]. - Trump's response to Musk's political ambitions included criticism and threats regarding Tesla's government contracts, further straining their relationship [8][10].

Core Viewpoint - Tesla shares experienced a significant decline following CEO Elon Musk's announcement of a new political party, raising investor concerns about his political involvement and its impact on the company [1][3][4]. Company Performance - Tesla's stock fell by 6.4% in pre-market trading, reflecting investor anxiety over Musk's political ambitions [3]. - The stock has seen major fluctuations since the November 5 presidential election, closing at $251.44 on Election Day, surging over 90% to an all-time high of $479.86 on December 17, and subsequently declining approximately 34% to close at $315.35 [6][11]. Political Involvement - Musk's announcement of the "America Party" aims to focus on a limited number of congressional seats to exert influence, which contrasts with investor expectations for Tesla's direction [1][14]. - The political ambitions come at a time when Tesla is facing challenges, including a 14% year-over-year drop in vehicle deliveries for the second quarter, missing Wall Street expectations [15]. Investor Sentiment - There is a growing sense of exhaustion among Tesla investors regarding Musk's continued political engagement, which diverges from their desire for stability during a crucial period for the company [4][5]. - Prominent figures within the MAGA movement have expressed concern that Musk's political moves could fracture the Republican base, indicating potential backlash from his political actions [19][20].

Tesla is swimming in contradiction. On the one hand, it’s a $1 trillion behemoth, rivaling the economy of an entire small nation. On the other hand, investors are jittery: shares are down about 17 % year-to-date, and profits and deliveries have just hit multi-quarter lows.The culprit? CEO Elon Musk's escalating political ambitions—and a glaring lack of an alternative CEO.Read Also: Elon Musk’s America Party Plans ‘Conflict’ With His Full-Time Responsibilities As Tesla CEO, Says Former DOGE AdvisorMusk's Ame ...