Tesla loses $68 billion in value after Elon Musk says he is launching a political party

Elon Musk said he would form a new political party called the "America Party. "Tesla s fell Monday after Musk's announcement

Tesla holders have wanted Musk to stay away from, especially after his stint at the so-called Department of Government Efficiency, which many have said damaged the automaker's brand

In this articleTSLA your favorite stocksCREATE FREE ACCOUNTTesla CEO Elon Musk attends the Saudi-U

Hamad I Mohammed | ReutersTesla stock fell nearly 7% on Monday after CEO Elon Musk announced plans to form a new political party

Musk said Saturday that the party would be called the "America Party" and could focus "on just 2 or 3 Senate seats and 8 to 10 House districts. " He suggested this would be "enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people. "The billionaire's involvement in has been a point of contention for investors

Musk earlier this year was instrumental in the so-called Department of Government Efficiency and worked closely with President Donald Trump — a move seen as potentially hurting Tesla's brand

Musk left DOGE in May, which helped Tesla's stock

Read more CNBC newsMusk backs Sen

Paul's criticism of Trump's megabill in first since it passedEthereum is powering Wall Street's future

The crypto scene at Cannes shows how far it's comeOpenAI CEO Sam Altman says he's 'politically less' in July 4 post bashing DemocratsApple scores big victory with 'F1,' but AI is still a major blem in Cupertino"Very simply Musk diving deeper into and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/holders want him to take during this crucial period for the Tesla story," Dan Ives, global head of nology re at Wedbush Securities, said 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," he wrote

Musk's previous political foray earned him Trump's praise in the early days, but he has since drawn the ire of the U

The two have clashed over various areas of policy, including Trump's spending bill, which Musk has said would increase America's debt burden

Musk has taken issue with particular cuts to tax credits and support for solar and wind energy and electric vehicles

Trump on Sunday called Musk's move to form a political party "ridiculous," adding that the Tesla boss had gone "completely off the rails. "Musk is contending with more than just political turmoil

Tesla reported a 14% year-on-year decline in car deries in the second quarter, missing expectations

The company is facing rising competition, especially in its key market, China

Stock Chart IconStock chart iconTesla year-to-date stock chart.