Tesla shares drop after Elon Musk plans a new political party
White House Senior Advisor Elon Musk, Washington, DC on March 9, 2025, US President Donald Trump (not in the picture) and Southern Cimen’e sea after landing to the White House walks.
Samuel Corum | Getty Images News | Getty Images
Tesla After CEO Elon Musk announced his plans to form a new political party, stocks were released on Monday.
Stock fell 7.13% until 4:27 AM
Musk said that the party would be called the “American Party” at the weekend and that “only 2 or 3 Senate seats and 8 to 10 home zones”. He argued that this would be “enough to serve the public as a vote that decides on controversial laws by allowing them to serve the real will of the people.”
The participation of billionaires in politics has been a point of discussion for investors. Earlier this year, Musk was part of the government productivity department and worked closely with President Donald Trump, a potentially damaging movement of Tesla’s brand.
Musk left Dge in May and helped Tesla’s shares.
Now the renewal of technology billionaire in the political arena makes investors tense.
“Very simple way to make a deeper dive into politics and now to try to take the environmental road, Tesla investors/shareholders want the Tesla investors to take for the Tesla story,” Wedbush Securities, the global president of Wedbush Securities. He said.
“Although the nucleus musk supporters will support Musk at every opportunity, there is a wider sense of exhaustion than many Tesla investors, where Musk continues to go down the political way.”
Musk’s previous political pressure won him the praise of Trump in the early days, but since then he drew the US president’s anger.
The two clashed on various policy areas, including Trump’s expenditure bill, which Musk said that the US will increase the debt burden. Musk supported certain deductions in tax loans and sun and wind energy and electric vehicles.
On Sunday, Trump called Musk’s movement to establish a political party “ridiculous” and added that his boss went “completely from rails”.
Musk is only struggling with more than political turmoil. Tesla reported a decrease of 14% annually in automobile deliveries in the second quarter and lacking expectations. The company faces increasing competition, especially in the key market.
