Tesla stock slumps (again), as Musk focuses on politics (again)
News snapshot:
- Tesla stock drops as political distractions mount
- Musk starts his own politics
- Tesla investors fear Musk is straying from its business
- Trump slams Musk’s “America Party”
Tesla investors are evidently unimpressed by Elon Musk refreshed politics, as the EV stock slumped again on Monday.
Elon Musk announced at the tail-end of last week his idea to launch a new political party.
Musk said his “America Party” will focus on US House and Senate seats in the next 12 months, with a potential presidential endorsement to follow.
The move comes just after Trump signed a tax-cut bill Musk opposed.
Tesla shares fell as much as 7.6% in trading on Monday, to $291.82, adding to a broader 20% decline this year.
Analysts from Wedbush and William Blair said Musk’s political moves were worsening investor fatigue and distracting from Tesla’s critical operational challenges.
“This is exactly the opposite direction Tesla shareholders want him to take,” wrote Wedbush’s Dan Ives.
Tesla faces slowing global sales, increasing EV competition in China, and rising political scrutiny. With Musk’s focus shifting toward Beltway politics, pressure is mounting on Tesla’s board to intervene.
The fallout may also further isolate Musk from the Trump administration, a concern for investors watching regulatory developments.
Trump, meanwhile, slammed Musk's plan. On his social media platform, Truth Social, he stated that Musk has become “a train wreck.”
The US president called the effort “ridiculous” and argued that third parties “have never worked” in the United States. The remarks further escalate a deepening feud between the two 'MAGA' figureheads.
