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Brinks Report > Blog > World > Tesla Shares Falls 7% After Musk’s Political Stunt – $68B Gone, His Net Worth Takes a Massive Hit
World

Tesla Shares Falls 7% After Musk’s Political Stunt – $68B Gone, His Net Worth Takes a Massive Hit

Dolon Mondal
Last updated: July 8, 2025 1:28 pm
Dolon Mondal
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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.

Trulli

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.

Also Read Bill Gates Warns US Health Aid Cuts Could Cause Millions of Deaths — Elon Musk Responds, Claiming Gates Is Protecting His Own Interests

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?

Also Read Former DOGE Adviser Urges Tesla Board to Question Elon Musk Over New Political Party

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