"Shut up, Dan"… Musk snaps at investor who proposed Tesla-xAI merger

Korea Economic Daily

Summary

Dan Ives, a Wedbush Securities analyst, forecasted that if Tesla merges with xAI, it could compete with OpenAI, Meta, and MS.
Musk strongly rejected the merger proposal related to securing voting rights, and expressed concerns about how his political activities could affect Tesla's corporate value.
After Musk's recent political actions, Tesla's share price fell by 21.5%, yet Wedbush continues to maintain a 'Buy' rating for Tesla.

Wall Street Tesla Optimist Ives

Predicts "Outperforming OpenAI, etc. if merged"

*Dan Ives, Wedbush Securities analyst. (Photo = Dan Ives SNS capture)*

Dan Ives, a Wedbush Securities analyst well known as a Tesla bull, proposed on the 8th (local time) a scenario in which Tesla acquires xAI, Elon Musk’s artificial intelligence (AI) startup, causing Musk to strongly object.

On this day, Ives made three proposals to the Tesla board via social media: △ Introducing a new compensation package granting Musk 25% voting rights to lay the foundation for a potential xAI merger △ Setting a guideline for the amount of time Musk should dedicate to Tesla’s management △ Implementing a board oversight system for Musk’s political activities.

In response, Musk shot back with, "Shut up, Dan." The first proposal is a plan to secure the voting rights Musk has long desired, but linking it to the xAI merger is thought to have provoked him.

Ives stated, "Combining Tesla’s data with xAI could create a leading AI company that could rival OpenAI, Meta, and Microsoft," adding, "There are concerns, but the benefits far outweigh them." However, Musk has repeatedly expressed reluctance toward going public. In fact, he previously delisted X (formerly Twitter) and has even considered taking Tesla private.

The proposal to restrict the amount of time Musk spends managing Tesla and to monitor his political activities stems from concerns that his political moves are negatively impacting Tesla’s corporate value. On the 6th, Musk publicly criticized Donald Trump, announcing the launch of a new party called 'America Party', and the following day, Tesla’s stock price plunged nearly 7%. From the start of the year to this day, Tesla stock has fallen 21.5%, the worst performance among major big tech names.

Ives is considered one of Wall Street’s most optimistic analysts on Tesla, setting a price target of $500 (about ₩680,000) for the company. This is 68% higher than the closing price on the 8th ($297.81), the highest among all analysts tracked by FactSet. Wedbush maintains a 'Buy' rating on Tesla.

Recently, however, Ives and a fellow analyst released a report titled, 'The Tesla Board Must Act: Criteria Needed for Musk, and This Drama Must End,' openly criticizing Musk’s political actions.

Reporter Dayeon Lim allopen@hankyung.com