Tesla's investors are experiencing 'exhaustion' from Musk's continued political focus, says Dan Ives

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Tesla investors are frustrated with Elon Musk's political involvement, wrote analyst Dan Ives.
Musk's new political party and feud with Trump worry investors about Tesla's future, Ives wrote.
Tesla's stock has dropped 22% this year amid lower sales and Musk's political activities.
Some Tesla investors just want the company's CEO to focus on making cars.
A Tesla analyst and one of its biggest bulls, Dan Ives, wrote that many of the company's investors feel a "sense of exhaustion" about Elon Musk's insistence on spending time in politics.
"Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story," Ives, a Wedbush analyst, wrote in a note published on Sunday.
The note followed Musk's announcement that he is creating a new political party amid his feud with President Donald Trump over the "Big Beautiful Bill."
"Today, the America Party is formed to give you back your freedom," Musk wrote on X on Saturday.
In his note, Ives said that Musk gave Tesla supporters a period of relief when he left the Trump Administration and the Department of Government Efficiency in May. It was good news for investors who worried that Tesla wasn't getting enough of the billionaire's attention.
"That relief lasted a very short time and now has a taken a turn for the worst with this latest announcement," Ives wrote.
The analyst added that Tesla's shares will likely be "under some pressure" on Monday as investors worry about Trump viewing Musk as more of a competitor than a friend. Tesla's stock is down 22% so far this year.
"Musk/Tesla do not need to keep poking the bear as Trump can create more hurdles for Musk/Tesla/SpaceX over the coming years," Ives wrote.
Tesla did not immediately respond to a request for comment.
In response to Musk's announcement, Trump said on his Truth Social platform on Sunday that Musk had gone "completely off the rails."
"He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States," the president wrote, adding that Musk was angry because the spending bill eliminated incentives to buy electric cars.
Musk's dabbling in politics in the past year has hit Tesla's performance. In the first half of this year, the EV maker faced protests, boycotts, and attacks over Musk's work with DOGE. More recently, the company's stock has suffered because of the ongoing feud between Musk and the president.
Last week, the carmaker reported that it delivered about 384,000 EVs in the second quarter, a 13.5% decrease from the same period in 2024.
Still, Tesla shareholders have long indicated that they don't think Musk can be replaced as CEO.
In May, Tesla's stock rose 7% in the week after Musk said he was "back to spending 24/7 at work" and sleeping in the office.
In June last year, shareholders approved Musk's controversial $55 billion pay package, which was largely seen as a referendum on his leadership. There was concern among investors that if the pay package had been thrown out, Musk might lose interest in the EV giant and divert attention to his other ventures.
Read the original article on Business Insider