Tesla’s board of directors is under mounting pressure to rein in CEO Elon Musk, after his surprise declaration on July 4th that he’s forming a political movement dubbed the “America Party” triggered a sharp selloff in Tesla stock.

The electric carmaker’s shares plunged nearly 7% on Monday, erasing over $68 billion in market capitalization — the latest blow in a year that has seen the company underperform its Big Tech peers and lose about a quarter of its value.

Wall Street, long known to indulge Musk’s unorthodox leadership style, is now calling for boundaries. Wedbush Securities analyst Daniel Ives, typically bullish on Tesla, published a scathing note Tuesday urging Tesla’s board to “act now,” warning that Musk’s deepening political entanglements could derail the company’s future at a pivotal moment.

Musk’s Politics, Tesla’s Pain

Musk’s announcement of a third political party — one that he claims could influence 2–3 Senate seats and 8–10 House races — has jolted markets and intensified scrutiny on whether he can remain fully committed to Tesla’s mission at a time of rising global competition and slowing EV sales.

“This is a tipping point in the Tesla story,” Ives wrote. “The company cannot have Musk spending more and more time creating a political party which will require countless time, energy, and political capital.”

His proposed remedy: the board must swiftly roll out a new pay package granting Musk 25% voting control, establish clear limits on how much time Musk spends away from Tesla, and implement formal oversight on his political activities.

That first proposal, ironically, aligns with Musk’s own desire to consolidate more power at Tesla — yet the billionaire dismissed the advice with a terse “Shut up” directed at Ives on social media.

Still, Ives doubled down in a statement to CNBC: “Elon has his opinion and I get it, but we stand by what the right course of action is for the Board.”

Earlier this year, Musk was instrumental in launching the so-called Department of Government Efficiency (DOGE) under the Trump administration, a controversial unit tasked with slashing federal bureaucracy. His exit from that role in May had temporarily calmed investor nerves — until the party announcement reopened old wounds.

Now, analysts and stakeholders are openly questioning whether Tesla’s board has the independence or willpower to rein in Musk.

“Tesla is entering a key autonomous and robotics future ahead,” Ives wrote. “The Board needs to act with Musk and create the framework for Tesla to thrive. It starts now.”

William Blair analysts followed suit, downgrading Tesla stock this week from “buy” to “hold.” Their note cited Musk’s “distraction” and predicted continued downside for Tesla if his political energy isn’t redirected back toward mission-critical operations like the robotaxi rollout and AI development.

“We would prefer this effort to be channeled towards the robotaxi rollout at this critical juncture,” the analysts wrote. “Investors are growing tired.”

Even pro-Musk voices are showing discomfort. James Fishback, CEO of hedge fund Azoria Partners and a vocal Trump supporter, said over the weekend that his firm was shelving plans for an exchange-traded fund focused on Tesla.

“Elon has gone too far,” Fishback said on X. He urged Tesla’s board to meet immediately, ask Musk to clarify his intentions, and determine whether they are compatible with full-time CEO responsibilities.

Market Risks Mount, While Tesla Stumbles

Tesla’s challenges go beyond boardroom dynamics. The company reported a 14% drop in car deliveries in Q2 — its largest year-over-year decline in years — as global competition, particularly from China’s BYD, intensifies. BYD has now overtaken Tesla as the world’s top EV seller, a development analysts say reflects how geopolitical tensions and local preferences are shifting EV demand.

In the U.S., political uncertainty is now colliding with the business model. Musk has criticized a new federal spending bill cutting EV subsidies and support for solar and wind — key areas that have historically boosted Tesla’s fortunes. His fallout with President Trump, who now calls the Tesla boss “off the rails,” adds a layer of unpredictability in a market that’s increasingly policy-sensitive.

Musk’s political persona may also be eroding Tesla’s global brand appeal, especially in Europe, where environmentally conscious consumers are souring on the company. Analysts say that the billionaire’s polarizing rhetoric risks alienating large swaths of the customer base, just as newer entrants and legacy automakers ramp up their EV offerings.

Amid all this, Tesla is still locked in a legal battle over Musk’s compensation. A Delaware judge voided his historic $56 billion pay package in January, ruling that the board failed to negotiate the deal independently or at arm’s length. That case is under appeal, and Tesla is currently deliberating what a new package should entail — a process now complicated by Musk’s public threats to shift focus elsewhere unless his control is secured.

Compounding concerns, Tesla has yet to deliver on key promises. The Cybertruck rollout, touted to boost the company’s declining sales, was a flop. The company’s highly touted robotaxi platform remains largely in testing, while competitors like Waymo and Cruise have moved ahead in select U.S. cities. Tesla’s solar energy business has also stagnated, and Full Self Driving (FSD) remains in beta despite years of promotion.

For many investors and analysts, this moment feels like an inflection point. The debate now centers on whether Tesla can evolve from a company led by a mercurial visionary into a more stable, shareholder-focused enterprise — or whether Musk’s increasingly personal battles will continue to eclipse its mission.

Musk and Tesla’s board — including chair Robyn Denholm and IR chief Travis Axelrod — have not responded to the growing criticism. The silence is deepening frustration among shareholders looking for reassurance that someone at the company is steering the wheel.

SpaceX is in talks to raise fresh capital through an internal share sale that would boost its valuation to approximately $400 billion, marking another milestone in the company’s remarkable rise as the world’s most valuable private space firm.

The deal, first reported by Bloomberg and corroborated by other outlets including The Information and Financial Times, is structured to raise new money while also offering a path for employee liquidity.

The dual-track transaction would include a primary fundraising round—targeting a small group of insiders and investors—as well as a tender offer, allowing current and former SpaceX employees to cash out a portion of their shares. This mechanism has become routine for SpaceX, which typically holds two such tender events each year, offering workers a rare chance to monetize their equity in the privately held company.

The tender is expected to price shares at about $212 apiece, up significantly from the $97 range seen just two years ago. The $400 billion valuation represents a jump from $350 billion during the company’s last tender offer in December 2024, and it more than triples SpaceX’s valuation from 2021, when the firm crossed the $100 billion mark for the first time.

Valuation Surge Fueled by Starlink, Starship

Since its founding by Elon Musk in 2002, SpaceX has steadily climbed to the forefront of the global aerospace and satellite internet industries, propelled by ambitious projects that now span:

Commercial and government launches: SpaceX controls more than half of the global market for orbital launches and has become the primary launch partner for NASA and the Pentagon.

Starlink: Its satellite internet business now serves over 3 million users worldwide, offering high-speed broadband via a growing constellation of low-Earth orbit satellites.

Starship: Still in development, this next-generation, fully reusable rocket is central to future deep-space missions and NASA’s Artemis program for lunar exploration.

The company’s tight grip on commercial launch services, expanding broadband footprint through Starlink, and high-stakes Starship ambitions continue to drive investor interest—and the massive valuation.

Internal Tender: Incentive and Retention Tool

This internal share sale isn’t just about raising cash. It’s also a strategy to reward and retain top talent in a firm that remains private despite growing interest in a potential IPO.

Under the terms of the current offer, select employees and former staff can sell their shares—though SpaceX often requires minimum thresholds to participate, sometimes $1 million or more. Past tender rounds have seen SpaceX itself buy back shares as well.

While Elon Musk has long resisted taking the company public, citing the quarterly pressures and regulatory headaches of the stock market, these regular liquidity events serve as a substitute for IPO-like compensation.

The new capital raise comes at a time of heightened investor sensitivity, as some analysts begin to question the sustainability of private tech valuations amid rising interest rates and macroeconomic uncertainty.

SpaceX remains a capital-intensive company. The Starship project alone has cost billions, with testing and development ongoing. Despite recent progress, full deployment for deep-space missions is still likely years away. Meanwhile, the global rollout of Starlink continues to require heavy investment in satellites, ground infrastructure, and international regulatory compliance.

Still, the upside for SpaceX is substantial. If Starlink achieves its targeted revenue scale, and if Starship delivers on its promise of fully reusable space travel, the company could transform global space economics.

IPO? Not Anytime Soon

Despite the swelling valuation, Elon Musk has repeatedly signaled that SpaceX will remain private for the foreseeable future, particularly because he wants to keep control of long-term missions like Mars colonization without shareholder interference.

This has led to growing speculation among analysts and investors about whether Starlink could eventually be spun off and taken public. Musk has said that’s possible, but only once Starlink achieves financial stability and predictable revenue—something he says is still a few years away.

Several analysts suggest the $400 billion valuation may still be justified, despite concerns about froth in private tech markets. With recurring revenue from Starlink, steady launch income from commercial and government contracts, and exclusive dominance in heavy-lift capabilities, SpaceX is in a category of its own.

The details of the deal, including the exact size of the funding round and tender offer, remain fluid. SpaceX has not publicly confirmed the numbers or participants. But if finalized as planned, the deal would reinforce SpaceX’s dominance in the global private space sector and further cement its lead in the race for a future beyond Earth.