Tesla Inc. analyst Dan Ives is not backing down from his criticism of CEO Elon Musk’s recent political involvement, despite Musk telling him to “shut up.” Ives believes that the Tesla board needs to step in and take action to ensure Musk is focused on the company’s autonomous and robotics future.
The Issue at Hand
On CNBC’s “The Exchange,” Ives emphasized the need for the Tesla board to establish boundaries and set guardrails for Musk’s political activities. He argued that Musk’s ongoing public dispute with President Donald Trump is distracting from the company’s core goals. Ives called for the board to limit Musk’s voting control to 25% and to oversee his time spent at Tesla, including his political involvement.
Proposed Solution
Ives suggested that a potential merger between Tesla and Musk’s xAI could be a “game-changer” for the company’s robotaxi and humanoid robotics plans. He believes that such a merger would create an “AI stalwart” and propel Tesla forward in the autonomous and AI space. With the AI race accelerating, Ives thinks that Musk needs to devote his time and energy to Tesla to prevent the company from falling behind.
Market Impact
Tesla shares were up 3.06% at $302.96 at the time of publication, despite being down 7% over the past month and 25% year-to-date. Ives remains bullish on Tesla, predicting that the company is on a path to a market cap of $2 trillion.
Recent Developments
Musk has confirmed that autonomous and robotics will “overwhelmingly dominate” Tesla’s future financial success. The company has launched its robotaxis in Austin and is reportedly redesigning its Optimus humanoid robot. With shareholder patience wearing thin, Ives is urging the Tesla board to lay out a plan for shareholders and ensure that Musk is focused on the company’s core goals.
Key Takeaways
- Dan Ives calls for Tesla board to step in and take action
- Proposed merger between Tesla and xAI could be a “game-changer”
- Musk needs to focus on Tesla’s autonomous and AI future
- Tesla shares up 3.06% despite recent decline
- Ives predicts Tesla will reach a market cap of $2 trillion