Tesla shares fell sharply in early trading Monday after CEO Elon Musk announced over the weekend that he is launching a new political party.
Tesla shares fell sharply in early trading Monday after CEO Elon Musk said he will launch a new political party — renewing investor concerns after the mogul’s dustup with President Donald Trump.
Over the weekend, Musk touted plans for the “America Party” and suggested it could concentrate “on just 2 or 3 Senate seats and 8 to 10 House districts.”
He added this would be “enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people.”
Shares of the electric vehicle pioneer, which has been battered by Musk’s close ties and subsequent fallout with Trump, were down 7.5% after Monday’s opening bell.
Musk’s latest moves marks a reentry into politics just months after resigning from his role as the de facto head of the the Department of Government Efficiency, or DOGE, a Trump-backed initiative.
His departure from DOGE had buoyed Tesla’s stock but the new political ambitions have rattled even his biggest supporters.
“Very simply Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story,” Tesla hawk Dan Ives, global head of technology research at Wedbush Securities, wrote in a note Sunday.
“While the core Musk supporters will back Musk at every turn no matter what, there is broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track.”
The Post has sought comment from Tesla.
Tesla’s stock has experienced major fluctuations since the Nov. 5 presidential election.
