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Elon Musk, chief executive officer of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris, June 16, 2023.

Gonzalo Fuentes | Reuters

Tesla CEO Elon Musk told Wedbush Securities’ Dan Ives to “Shut up” on Tuesday after the analyst offered three recommendations to the electric vehicle company’s board in a post on X.

Ives has been one of the most bullish Tesla observers on Wall Street. With a $500 price target on the stock, he has the highest projection of any analyst tracked by FactSet.

But on Tuesday, Ives took to X with critical remarks about Musk’s political activity after the world’s richest person said over the weekend that he was creating a new political party called the America Party to challenge Republican candidates who voted for the spending bill that was backed by President Donald Trump.

Ives’ post followed a nearly 7% slide in Tesla’s stock Monday, which wiped out $68 billion in market cap. Ives called for Tesla’s board to create a new pay package for Musk that would get him 25% voting control and clear a path to merge with xAI, establish “guardrails” for how much time Musk has to spend at Tesla, and provide “oversight on political endeavors.”

Ives published a lengthier note with other analysts from his firm headlined, “The Tesla board MUST Act and Create Ground Rules For Musk; Soap Opera Must End.” The analysts said that Musk’s launching of a new political party created a “tipping point in the Tesla story,” necessitating action by the company’s board to rein in the CEO.

Still, Wedbush maintained its price target and its buy recommendation on the stock.

“Shut up, Dan,” Musk wrote in response on X, even though the first suggestion would hand the CEO the voting control he has long sought at Tesla.

In an email to CNBC, Ives wrote, “Elon has his opinion and I get it, but we stand by what the right course of action is for the Board.”

Musk’s historic 2018 CEO pay package, which had been worth around $56 billion and has since gone up in value, was voided last year by the Delaware Court of Chancery. Judge Kathaleen McCormick ruled that Tesla’s board members had lacked independence from Musk and failed to properly negotiate at arm’s length with the CEO.

Elon Musk can't continue to go down this political path, says Wedbush's Dan Ives

Tesla has appealed that case to the Delaware state Supreme Court and is trying to determine what Musk’s next pay package should entail.

Ives isn’t the only Tesla bull to criticize Musk’s continued political activism.

Analysts at William Blair downgraded the stock to the equivalent of a hold from a buy on Monday, because of Musk’s political plans and rhetoric as well as the negative impacts that the spending bill passed by Congress could have on Tesla’s margins and EV sales.

“We expect that investors are growing tired of the distraction at a point when the business needs Musk’s attention the most and only see downside from his dip back into politics,” the analysts wrote. “We would prefer this effort to be channeled towards the robotaxi rollout at this critical juncture.”

Trump supporter James Fishback, CEO of hedge fund Azoria Partners, said Saturday that his firm postponed the listing of an exchange-traded fund, the Azoria Tesla Convexity ETF, that would invest in the EV company’s shares and options. He began his post on X saying, “Elon has gone too far.”

“I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO,” Fishback wrote.

Musk said Saturday that he has formed the America Party, which he claimed will give Americans “back your freedom.” He hasn’t shared formal details, including where the party may be registered, how much funding he will provide for it and which candidates he will back.

Tesla’s stock is now down about 25% this year, badly underperforming U.S. indexes and by far the worst performance among tech’s megacaps.

Musk spent much of the first half of the year working with the Trump administration and leading an effort to massively downsize the federal government. His official work with the administration wrapped up at the end of May, and his exit preceded a public spat between Musk and Trump over the spending bill and other matters.

Musk, Tesla’s board chair Robyn Denholm and investor relations representative Travis Axelrod didn’t immediately respond to requests for comment.

WATCH: Musk-backed party would be doomed by his unfavorability

Musk-backed party would be doomed by his unfavorability, says Big Technology's Alex Kantrowitz

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Baidu plans to expand its robotaxis to Europe with Lyft deal

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Baidu plans to expand its robotaxis to Europe with Lyft deal

Cheng Xin | Getty Images

Baidu will bring its driverless taxis to Europe next year via a partnership with U.S. ridehailing firm Lyft, as the Chinese tech giant looks to expand its autonomous vehicles globally.

The robotaxis will initially be deployed in the U.K. and Germany from 2026 with the aim to have “thousands” of vehicles across Europe in the “following years,” the two companies said.

Lyft has had very little presence in Europe until last week when it closed the acquisition of Germany-based ride hailing company FreeNow, which is available in over 150 cities across nine countries, including Ireland, the U.K., Germany and France.

Deployment of the autonomous cars is “pending regulatory approval,” Lyft and Baidu said in a Monday statement. It’s unclear if Lyft will offer Baidu’s robotaxis via the FreeNow app or another product.

The partnership marks a continued push from Baidu to expand its robotaxis to international markets.

Last month, Baidu partnered with Uber to deploy its autonomous cars on the ride-hailing giant’s platform outside the U.S. and mainland China, with a focus on the Middle East and Asia, which will launch later this year. The partnership also covers Europe, though a launch date for the region has not yet been disclosed.

In China, Baidu has been operating its own robotaxi service since 2021 in major cities like Beijing, allowing users to hail an Apollo Go car through the app. Meanwhile, for Lyft, the deal could boost the firm’s presence in the region as it looks to take on rivals like Uber and Bolt.

Autonomous vehicles have become a big focus for ride-hailing companies which have looked to partner with companies that are developing the technology for driverless cars.

In the U.K., a market that Lyft is targeting, Uber this year partnered with self-driving car technology firm Wayve to launch trials of fully autonomous rides starting in spring 2026.

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Tesla awards Musk $29 billion in shares with prior pay package in limbo

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Tesla awards Musk  billion in shares with prior pay package in limbo

Tesla approves 96 million-share award to CEO Elon Musk

Tesla CEO Elon Musk was awarded an interim pay package of 96 million shares of the company over the weekend. The shares would be worth about $29 billion.

Tesla stock climbed about 2% Monday.

The company said in a filing Sunday that the pay package would vest in two years as long as Musk continued as CEO or in another key executive position.

The new award would be forfeited if the legal battle over his 2018 compensation ends with Musk being able to exercise the larger pay package, which was valued at $56 billion.

In January, Chancellor Kathaleen McCormick upheld a prior ruling in the case, Tornetta v. Musk, that the compensation plan was improperly granted. Tesla shareholders approved the pay package in June 2024.

The case is now before the Delaware Supreme Court.

Musk’s 2018 pay package included a set of performance targets for the company, which were all achieved.

The judge called it “the largest potential compensation opportunity ever observed in public markets” in her January decision and said it was 33 times higher than the nearest comparison, which was Musk’s prior compensation package.

Elon Musk: We'll have hundreds of thousands of full self-driving Teslas by the end of next year

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Legal AI startup Harvey hits $100 million in annual recurring revenue

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Legal AI startup Harvey hits 0 million in annual recurring revenue

Harvey co-founders Winston Weinberg and Gabe Pereyra

Courtesy of Harvey

Artificial intelligence startup Harvey on Monday announced it has reached $100 million in annual recurring revenue, or ARR, just three years after its launch. 

Harvey runs an AI-powered legal platform for lawyers at law firms and large corporations. Its technology can help with legal research, drafting and diligence projects, and the company is also building industry-specific use cases. 

Winston Weinberg, co-founder and CEO of Harvey, said the startup’s ARR milestone has largely been driven by usage. Harvey has surpassed 500 customers, including CNBC’s parent company, Comcast, and its weekly average users have quadrupled over the past year, the startup said. 

“Most of our accounts grow pretty massively,” Weinberg told CNBC. “You’ll sell to a Comcast or to a law firm, and they’ll buy a couple hundred seats, and then they expand that usage pretty quickly.” 

Weinberg is a former lawyer, and he co-founded Harvey with his friend and roommate Gabe Pereyra, a former research scientist at Google DeepMind and Meta. The pair launched the company in 2022 after experimenting with OpenAI’s large language model GPT-3, which came out before its viral AI chatbot, ChatGPT. 

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The company’s name, Harvey, is partially inspired by one of the main characters in “Suits,” a legal drama TV series, Weinberg said.

Harvey has raised more than $800 million from investors, according to PitchBook, including Kleiner Perkins, Sequoia Capital and the OpenAI Startup Fund. The company also earned a spot on the 2025 CNBC Disruptor 50 list. 

“With gen AI, and how fast everything’s moving, you just have to learn how to scale really, really fast,” Weinberg said. “I’d say, like every six months I go through a new scaling experience.”

In the months ahead, Weinberg said Harvey is focused on its global expansion and continuing to build out its team. The startup recently hired Siva Gurumurthy, the former director of engineering at Twitter, as its chief technology officer, and John Haddock, who spent a decade at Stripe, as its chief business officer. 

Weinberg said he has learned to appreciate the value of a strong team, especially during periods of rapid growth. 

“We’re starting to get to the point where we have really good leadership in place,” Weinberg said. “That just changes your ability to scale to such a massive degree.”

Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.

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