Tesla shares took a major hit on Monday after Elon Musk launched his new political party, the America Party. The announcement didn’t sit well with investors, who quickly pulled back — sending Tesla’s stock down 6.8% in a single day. The closing price was $293.94 on Nasdaq.
This drop wiped out over $68 billion in Tesla’s market value in just one day. It was one of the biggest single-day losses for the EV giant in 2025.
Musk’s politics now hurting Tesla?
This sharp fall isn’t just about numbers. It tells a bigger story. Investors are worried that Musk’s increasing focus on politics is distracting him from Tesla.
Earlier this year, Musk got into a public fight with US President Donald Trump over tax and spending bills. Over the weekend, he revealed his plan to launch a new political party. Trump hit back, calling the idea “ridiculous.” This public clash is adding fuel to investor fears.
Falling shares, falling net worth
The price crash didn’t just hurt Tesla — it hit Musk personally too. According to Bloomberg, Elon Musk’s net worth fell by $15.3 billion in a single day. That’s a big blow, even for the world’s richest man.
So far in 2025, Tesla stock is down 27%. That means Musk’s wealth has dropped by $86.7 billion this year. His current net worth stands at $346 billion.
Board pressure and future risks
Musk’s deep dive into politics is raising questions within Tesla too. There were earlier reports that some board members were worried about his distractions. Though the board chair denied plans to replace Musk, the pressure is clearly building.
Meanwhile, equity analysts warn that if the stock continues to drop, Tesla could lose over $80 billion in market cap soon.
Will Tesla bounce back?
This isn’t the first time Musk’s off-the-track moves have impacted Tesla. But this time, the stakes are higher. With car sales falling and Musk busy fighting political wars, the EV brand may struggle to win back consumer trust.
Investors are now asking a simple question: Is Musk still fully committed to Tesla?
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