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.

Tesla shares sank Monday after CEO Elon Musk announced he would form a new political party in an escalation of his feud with President Donald Trump.

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.