Tesla Stock Tanks as Musk Launches 'America Party,' Sparks Investor Panic
United States: Tesla’s market valuation took a noticeable tumble in early Monday trading, following an unexpected announcement from CEO Elon Musk about venturing into political territory with the birth of a new party.
The stock experienced a bruising 7.13% drop as of 4:27 am ET, reflecting growing investor disquiet.
Over the weekend, Musk unveiled intentions to launch a faction called the “America Party,” hinting that its initial mission would be laser-focused—targeting merely a handful of Senate and House districts. According to him, influencing just a few seats could allow the party to become a make-or-break vote on divisive legislation, shaping decisions in line with what he calls the "authentic pulse of the people."
However, the billionaire’s deeper dive into political waters is proving to be a flashpoint for shareholders. Earlier in the year, Musk had embedded himself into the federal policy space through his role in the Department of Government Efficiency, aligning directly with President Donald Trump. While some saw it as a patriotic gesture, many viewed it as brand-damaging for Tesla’s futuristic image.