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. Investment Forum, in Riyadh, Saudi Arabia, May 13, 2025.
Hamad I Mohammed | ReutersTesla stock fell nearly 7% on Monday after CEO Elon Musk announced plans to form a new political party. The electric vehicle company lost more than $68 billion in market cap.
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.
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"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.