Since November of last year, Musk has sold more than 40 billion dollars worth of stock in the company, and investors aren't happy about it.
Dan says that Musk is using his "golden child" to fund not only the initial cost of his acquisition, but also to backstop the company's losses.
He wrote in a research note that the nightmare on the social networking site continued. By the day, Musk's use ofTesla as his own ATM machine is worse than ever.
The take-private by Musk saddled the company with a sizable $13 billion debt load, despite the fact that it has struggled to turn a steady profit. After the acquisition, it will have to pay over a billion dollars in interest every year.
As a result of Musk's equity sales, which amount to more than 75% of the $52 billion market value of the world's fifth largest automaker, Ford, the EV giant was removed from the best ideas list.
He thinks that Musk has damaged the reputation of the company with his actions.
"Investor frustration is building as the Musk brand has quickly deteriorated over the past six months and has taken an accelerated turn for the worse since he officially took overTwitter ownership."
This year, the stock of the company is down more than 60 percent, and this month it has fallen by more than 12 percent. This month, the world's richest person lost his title to a Frenchman.
Do you know when it ends? The author wrote a letter. Musk is throwing gasoline in the fire by selling more stock and creating brand damage through his actions on the social networking site.
The sales may come as a surprise to the company's loyal investors, because the CEO said back in April that he was finished selling shares.
He said there wouldn't be any more TSLA sales after today.
This isn't the first time Musk has said one thing but done another, in August and November of last year.
These sales put a lot of pressure on the stock of the company.
He wrote that this is a boy that cried wolf with the Street and bulls worried what is around the corner for Musk.
The board of directors will have to confront some of the issues head-on in the near term due to investors' frustration with Musk's sales.
He wrote that this is a time of truth for Musk and the board.
Despite the rough patch for the company, Ives still believes in the future of the company. The long-term growth story of the company will become the focus of investors once the "overhang" is over, according to him.
A $250 price target is the same as a "BUY" rating on the shares ofTesla.
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