Top Tesla analyst urges board to rein in Musk

Tesla’s biggest supporter says it is time to rein in the controversial billionaire at the helm of the EV giant.

A leading wall street Tesla analyst has issued a warning to Tesla’s board of directors, urging immediate action over chief executive Elon Musk.

Wedbush managing director Dan Ives, one of Tesla’s most bullish analysts, laid out a three part strategy in a Tuesday morning note that calls for greater oversight of Musk.

Tesla “needs to act now and set the ground rules for Musk going forward around his political ambitions and actions,” Ives said.

Tesla’s share price has dipped of late, thanks to Elon Musk’s fight with President Donald Trump.

MORE: The baby buy replacing prams

President Trump and Elon Musk are no longer allies. Photo: ROBERTO SCHMIDT / AFP

Shares dropped 6 per cent on Monday following Musk’s announcement of his intention to create a new political party, wiping more than USD $15 billion from his personal wealth.

The stock slightly rebounded yesterday by 3 per cent, however remains down by more than 10 per cent since Musk started publicly criticising Trump last month.

Ives, who has been a long-term supporter of Tesla, said Musk’s attention has become increasingly fragmented as he pivots his interests towards SpaceX, xAI and politics.

He suggested Tesla introduce a new compensation package that would increase Musk’s voting stake to 25 per cent, up from 13 per cent if he agrees to spend a guaranteed amount of time actually working on Tesla, not just side projects like SpaceX, X or political ventures.

MORE: Eye-watering amount Mustang will cost Aussies

Tesla's Cybercab robotaxi launched in Texas last month. Photo: Robyn Beck / AFP

Ives also suggested tying Musk’s pay to his behaviour.

He wants Musk’s massive bonus to be conditional, meaning if he spends too much time on politics or things that hurt the Tesla brand, he could lose some of that bonus.

Lastly, Ives suggested a watchdog group for Elon, a special board that would keep an eye on Elon’s public behaviour and make sure they don’t damage the company’s reputation.

The Board should “create a special Board oversight committee for Musk around his political ambitions and ground rules that would violate his pay package,” Ive said.

Musk responded directly to Ives’ comments via a post on X, writing “Shut up Dan”.

MORE: Huge issue with super cheap car

Tesla is facing its most challenging sales period in years, with global deliveries falling in both first and second quarters of 2025.

A decline that analysts believe is due to Musk’s behaviour.

Despite the falling numbers, Musk remains the world’s richest individual with an estimated fortune of $398 billion, including a $124 billion stake in Tesla, according to Forbes.

Originally published as Top Tesla analyst urges board to rein in Musk