Tesla shares plummeted 6.8% on Monday, wiping $79 billion off the company’s value, as investors reacted to concerns over Elon Musk’s new political party. The significant drop signals widespread worry that Musk’s political endeavors will distract him from his responsibilities at the electric car maker, potentially damaging the Tesla brand.
The market capitalization of Tesla fell from just over $1 trillion to about $921 billion, clearly indicating the negative sentiment among shareholders. This concern is not entirely new, as Musk’s past political engagements, particularly his complex relationship with Donald Trump, had already fueled worries about consumer backlash and potential governmental repercussions for his businesses.
Analysts are openly discussing a “broader sense of exhaustion” among Tesla investors, who are increasingly vocal about their desire for Musk to remain focused on the company’s core business. The sentiment is that his deep dive into politics is ill-timed and could jeopardize Tesla’s future.
Musk announced the formation of the “America party” on his X platform over the weekend, stating his intention to fight government waste and restore freedom. However, this announcement has seemingly exacerbated investor anxieties, compounded by strong criticism from figures such as Donald Trump.
