Tesla Shares Tumble Over Musk's New Political Move

Company is also facing a slowdown in China
Posted Jul 7, 2025 8:10 AM CDT
Tesla Shares Tumble Over Musk's New Political Move
Elon Musk listens as President Trump speaks during a news conference in the Oval Office of the White House, Friday, May 30, 2025, in Washington.   (AP Photo/Evan Vucci)

Tesla investors apparently aren't thrilled with CEO Elon Musk's plans to launch a new political party. The company's stock fell more than 7% in premarket trading on Monday, reports CNBC. Musk's move raised fresh concerns among investors already wary of his forays into politics—and who hoped he would be fully back to business after leaving his role at the Department of Government Efficiency amid friction with President Trump.

Wedbush analyst Dan Ives says this new move to create the "America Party" is "exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story." Tesla stock now is down 14% since Musk first began breaking with Trump over the "Big Beautiful Bill" last month. Also not helping: The Wall Street Journal reports that Tesla is flagging in the crucial Chinese market as automakers there continue to outpace Musk's company. (Trump criticized the new party as "ridiculous.")

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