Shares of Elon Musk’s dropped by more than seven percent on Monday morning following CEO Elon Musk’s announcement of his intention to form a new political party dubbed the “America Party.”
CNBC reports that Elon Musk’s announcement of his plans to establish a new political party named the “America Party” has resulted in a seven percent drop in Tesla’s stock price on Monday, as investors grappled with the potential implications of Musk’s latest venture into politics.
According to Musk, the America Party would focus on securing “just 2 or 3 Senate seats and 8 to 10 House districts,” which he believes would be sufficient to “serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people.” The billionaire’s decision to delve deeper into the political arena has raised concerns among Tesla shareholders, who have long advocated for Musk to steer clear of politics and concentrate on the company’s core business.
Musk’s previous foray into politics, which saw him working closely with President Donald Trump as part of the so-called Department of Government Efficiency (DOGE), was widely perceived as detrimental to Tesla’s brand image amongst its core customer base of leftists. Although his departure from DOGE in May provided a temporary boost to the company’s stock, his renewed involvement in politics has once again left investors on edge.
Dan Ives, global head of technology research at Wedbush Securities, commented on the situation in a note on Sunday, stating, “Very simply Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story.” He further added, “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.”
Breitbart News previously reported on longtime Tesla supporter Ross Gerber criticizing Musk’s fight with Trump over the “Big Beautiful Bill:”
In a sharply worded post on X, influential Tesla supporter Ross Gerber expressed his disappointment with Elon Musk’s recent attack on Donald Trump’s “Big Beautiful Bill.” Gerber pointed out that Trump’s opposition to handouts to the EV industry was never a secret while Musk worked with the current administration before and after the 2024 election.
Gerber wrote, “Amazingly Elon now attacking all the people he helped put in power. This should work out well for tesla [sic] I’m sure. After he supported the end of all EV benefits under the current laws along with supporting an administration directly opposed to teslas success. The BOD, selling stock and living the good life.” The evident sarcasm in his post underscores the frustration felt by some Tesla supporters regarding Musk’s contradictory political opinions.
President Trump, in response to Musk’s decision to form a political party, labeled the move as “ridiculous” on Sunday, asserting that the Tesla CEO had gone “completely off the rails.”
Breitbart News reported:
President Donald Trump said he is “saddened” to watch Elon Musk “go completely off the rails” a day after his tech mogul former ally announced the creation of a new political party following their public feud.
“I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,” Trump said in a Sunday Truth Social post. “He even wants to start a Third Political Party, despite the fact that they have never succeeded in the United States — The System seems not designed for them.”
Trump continued on in his post to denounce third parties and Musk’s vested interest in electric vehicle (EV) mandates as the CEO of Tesla:
“The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds! Republicans, on the other hand, are a smooth running “machine,” that just passed the biggest Bill of its kind in the History of our Country. It is a Great Bill but, unfortunately for Elon, it eliminates the ridiculous Electric Vehicle (EV) Mandate, which would have forced everyone to buy an Electric Car in a short period of time. I have been strongly opposed to that from the very beginning. People are now allowed to buy whatever they want — Gasoline Powered, Hybrids (which are doing very well), or New Technologies as they come about — No more EV Mandate. I have campaigned on this for two years and, quite honestly, when Elon gave me his total and unquestioned Endorsement, I asked him whether or not he knew that I was going to terminate the EV Mandate — It was in every speech I made, and in every conversation I had. He said he had no problems with that — I was very surprised!”
The president concluded his post by taking another swipe at Musk for bringing commercial astronaut and fellow billionaire Jared Isaacman into his fold to lead NASA — a very short-lived nomination as it was withdrawn following the discovery of his recent donations to Democrats:
“Additionally, Elon asked that one of his close friends run NASA and, while I thought his friend was very good, I was surprised to learn that he was a blue blooded Democrat, who had never contributed to a Republican before. Elon probably was, also. I also thought it inappropriate that a very close friend of Elon, who was in the Space Business, run NASA, when NASA is such a big part of Elon’s corporate life. My Number One charge is to protect the American Public!”
Apart from the political turmoil, Tesla is grappling with other challenges, including a 14 percent year-on-year decline in car deliveries in the second quarter, which fell short of expectations. The company is also facing increasing competition, particularly in its key market, China.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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