Wedbush analyst Dan Ives wrote that the EV maker’s directors need to set ground rules for the CEO regarding his political activities.

Dan Ives, an analyst with Wedbush Securities, wrote that Musk's continued push into politics is "exactly the opposite direction" investors want to see.

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.