The stock drop comes amid Musk's announcement of a new political party, which William Blair and other analysts say risks diverting attention during a crucial autonomous and roboti

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

Tesla analyst Dan Ives lays out 3 ways the company's Board of Directors could oversee Musk's political push and help protect shareholders.