In Ives' view, the Tesla board should put forward a new incentive pay package for Musk that increases his ownership of Tesla up to around 25% voting power. Ives wrote Tuesday that part of this new pay package would "lay out the amount of time" Musk must spend on Tesla operations to fulfill his pay package.

Shares in Tesla plunged 6.79% Monday after its CEO Elon Musk said he is forming a new American political party, provoking an irate response from President Donald Trump. Shares in Tesla (TSLA) had dropped as much as 7.

Elon Musk's announcement of a new political party triggered a nearly 7% drop in Tesla's stock, as investors grew increasingly concerned about his political involvement and the company's broader business challenges.