Tesla shares took a heavy hit on Monday. The electric car giant dropped over 7% in pre-market trading. That means about $70 billion of Tesla’s value could vanish in just a day.
Why? Because Elon Musk just launched his own political party — and investors are not happy.
The move has sparked fears that Musk, Tesla’s boss, is getting too deep into politics. Investors worry that this bold step will distract him from Tesla at a time when the company needs full focus.
Musk revealed the new “America Party” on his social media platform X over the weekend. He said the country is being ruined by “waste & graft” and that the new party will bring back freedom.
But the markets didn’t see this as freedom. They saw it as a problem.
Musk vs Trump: Allies no more
Donald Trump, once an ally of Musk, is now openly attacking him. On Sunday, Trump called Musk’s political party idea “ridiculous” and said Musk was going “off the rails.”
This growing tension between Musk and Trump has added more fuel to investor fears. Will the White House now target Musk’s companies? Will Musk get caught up in a political war instead of building cars?
Dan Ives speaks out
Dan Ives, a well-known tech analyst, didn’t hold back. He said this move is “the opposite direction” of what Tesla investors want right now.
He believes this is a critical time for Tesla and Musk’s full attention should be on the company. Instead, Musk is diving deeper into politics. That’s not what shareholders signed up for.
Investors are tired
Musk is Tesla’s largest shareholder. His fortune could shrink by $9 billion if the stock continues to fall. But it’s not just about money. Many investors say they’re tired of the drama.
They want focus, not firestorms. They want innovation, not political fights.
Can Tesla bounce back?
Tesla is still worth just under $1 trillion. But this dip shows how sensitive the market is to Musk’s every move.
If he continues to push into politics, more sell-offs could come. The next few weeks will be key.
One thing’s clear: Tesla’s road just got bumpier.
