Tesla CEO, Elon Musk, instructs a financial analyst to remain silent regarding proposals to restrict his political engagements.
In a series of unexpected moves, Tesla CEO Elon Musk has found himself at the centre of a political storm, with his recent actions and statements causing controversy and stirring up debate.
Musk's tenure within the Trump administration came to an end in late May, but his influence did not stop there. His role as the leader of the Department of Government Efficiency sparked protests and boycotts at Tesla dealerships, as his political affiliations and actions raised concerns among some stakeholders.
Over the weekend, Musk announced the creation of an America Party, a move designed to undercut both Republicans and Democrats. This announcement was met with a decline in Tesla's stock, as investors expressed their concerns about the potential impact on the company's regulatory framework during the Trump administration.
Dan Ives, a managing director at Wedbush Securities, has suggested that the Tesla board should take steps to manage Musk's political activism. In his full investor note, Ives warned that Musk's antagonism towards Trump and GOP lawmakers could negatively impact Tesla's regulatory environment.
Ives proposed several measures to manage Musk's political involvement, including establishing guardrails for the amount of time Musk spends at Tesla and having oversight over his political endeavours. He also suggested updating Musk's pay package to give him 25% voting control and clear a path for a merger with xAI.
Musk hit back at these suggestions, responding with the phrase "Shut up, Dan." The Tesla board has not publicly responded to Ives' suggestions at the time of writing.
Following his departure from the administration, Musk was a vocal critic of the One Big Beautiful Bill Act. This led to a public feud between Musk and President Trump, though they later sought to move past the spat.
Tesla's stock is currently down over 22% year to date, due in part to slow EV sales and the political blowback over Musk's support for President Donald Trump. On Wednesday, Tesla's stock declined over 1.1% and has declined more than 5.6% in the past five days.
As Musk continues to navigate the complex world of politics, it remains to be seen how his actions will impact Tesla and its stakeholders in the future.
- The creation of the America Party by Elon Musk, a move aiming to challenge both Republicans and Democrats, has caused an uproar in the political markets and sparked debates among investors due to concerns about Tesla's regulatory framework and its potential impact on business.
- Dan Ives, a managing director at Wedbush Securities, has urged the Tesla board to manage Elon Musk's political activism, suggesting the implementation of guardrails for Musk's time at Tesla, oversight over his political endeavors, and updating his pay package while making provisions for a potential merger with xAI.
- In light of Musk's departure from the Trump administration, his criticism of the One Big Beautiful Bill Act has contributed to a public feud between Musk and President Trump, raising questions about Musk's standpoints on various finance and policy matters within the general-news landscape.
- As Elon Musk navigates the tumultuous world of politics, Tesla's stocks have been affected negatively, with a 22% decline year to date, primarily due to slow EV sales and the political backlash generated by Musk's support for President Donald Trump in the trading and finance markets.
