Recently, Tesla analyst and supporter Dan Ives suggested that Tesla’s board should create a new pay plan for CEO Elon Musk. He shared his views in a post on X (formerly Twitter), saying the board should take three key steps:
- Give Musk a new pay package that lets him have 25% voting control, which could help merge Tesla with his AI company, xAI.
- Set rules for how much time Musk should spend at Tesla.
- Keep a close watch on Musk’s political activities.
Elon Musk didn’t like this suggestion. He replied to Ives on X with just three words: “Shut up, Dan.”
Dan Ives believes these changes would be good for Tesla, even though Musk clearly disagrees. “Elon has his opinion, and I get it, but we stand by what we think is the right move for Tesla’s board.”
Tesla’s Stock Drops Big
Musk recently said he wants to start a new political group called the America Party. After this announcement, Tesla’s stock fell nearly 7% in one day, wiping out over $68 billion in market value.
Read more: Tesla Stock Could Rise 58%, Says Analyst Dan Ives — Urges Elon Musk to Stay Focused
Many investors are worried that Musk’s growing involvement in politics could harm Tesla’s brand. Earlier this year, he joined a government group called DOGE and worked closely with Donald Trump. That also made some investors nervous. After Musk stepped away from that role in May, Tesla’s stock went up. Now that he’s back in politics, concerns are rising again.
The Long Fight Over Musk’s Pay
One of the biggest ongoing debates at Tesla is Musk’s pay. Back in 2018, he was given a special pay package that included 304 million stock options. He would only get the money if Tesla met tough performance goals — which it did.
By 2023, Musk was allowed to claim all the options. At the time, they were worth $56 billion, then went up to $146 billion in December. Today, they’re worth about $98 billion.
Also Read: Can Elon’s Party Beat the Odds; or Prove America’s Third Party Problem Right?
But in January 2024, a judge in Delaware canceled the deal, saying it was way too large and that Tesla’s board was too close to Musk to make fair decisions. The judge said they acted “like servants of a powerful boss.”
