Elon Musk’s New Party, Tesla’s New Problem
Elon Musk's bold political gamble sends Tesla stock tumbling, as investors fear a distracted CEO and escalating tensions with Trump could destabilize the company’s future.

Tesla’s stock took another beating on Monday morning, dropping nearly 7 percent in premarket trading after CEO Elon Musk revealed plans to launch a new U.S. political party. The announcement—coming just days after Tesla reported declining deliveries for a second straight quarter—has amplified already mounting investor concerns about Musk’s focus. The new political vehicle, dubbed the “America Party,” surfaced after Musk publicly clashed with President Donald Trump over the administration’s recent tax-cut and spending policies. What started as a simmering policy disagreement exploded into a public feud, culminating in Musk's decision to launch his own political brand.
For investors, the message was loud and clear. Musk, the brain behind Tesla’s meteoric rise, isn’t just doubling down on politics—he’s potentially shifting his energy away from the company at a time when it desperately needs focus and leadership. While Tesla is no stranger to controversy, this move sent a ripple of unease through financial markets that were already jittery over the company’s recent performance.
