Wedbush Securities analyst Dan Ives, a long-time Tesla bull, has called on the Tesla board to take immediate action regarding Elon Musk’s growing political involvement. Ives believes Musk’s political ambitions risk diverting his attention from Tesla’s critical growth phase, particularly as the company approaches its autonomous and robotics future. Tesla is an electric vehicle and clean energy company that also develops battery energy storage, solar panels and solar roof tiles. It is headquartered in Austin, Texas.
Ives suggests the board establish clear guidelines for Musk’s political activities, cautioning that pursuing a political agenda could alienate key stakeholders, especially within the Republican party, which is detrimental given the upcoming autonomous regulatory framework during the potential Trump administration. He stresses the importance of Musk remaining focused on Tesla, highlighting his pivotal role in the company’s autonomous and robotics initiatives.
To ensure Musk’s continued dedication, Ives recommends the board approve a new incentive pay package that would grant Musk approximately 25 per cent voting power in the company. This package should include general guidelines regarding the amount of time Musk dedicates to Tesla. He also suggests the formation of an oversight committee to manage Musk’s political aspirations and establish ground rules for his involvement.
Ives maintains an outperform rating on Tesla with a $US500 price target. On Tuesday in New York (Wednesday AEST), Tesla shares experienced a rise of 1.3 per cent, reaching $US297.81.