Tesla Stock PLUNGES as Musk Launches ‘America Party,’ Investors Rattle

New York, NY — Tesla shares tumbled nearly 7% in premarket trading Monday after CEO Elon Musk announced the formation of a new political faction, the America Party, reigniting investor fears that the billionaire’s attention is drifting from the electric vehicle giant.

The announcement, made over the weekend on Musk’s platform X, comes amid a deepening feud with President Donald Trump over the recently passed “One Big, Beautiful Bill.” Musk called the legislation “a pork-filled abomination,” and vowed to challenge it by targeting swing districts with his new party.

Wall Street didn’t cheer. Tesla’s stock dropped from $328.01 to $305.25, wiping out nearly $70 billion in market value in hours. Analysts say the timing couldn’t be worse: Tesla is already grappling with falling sales, an aging vehicle lineup, and mounting competition in the EV space.

“This is exactly the opposite direction Tesla shareholders want Musk to take,” said Dan Ives of Wedbush Securities. “Instead of focusing on AI and robotaxi development, he’s diving headfirst into Beltway politics”.

Investor anxiety is spreading. Azoria Partners delayed the launch of a Tesla-focused ETF, citing concerns over Musk’s political ambitions. Meanwhile, Trump slammed the America Party as “ridiculous,” warning that Musk’s government contracts could face scrutiny3.

Tesla’s board has yet to comment, but pressure is mounting. Some shareholders are calling for an emergency meeting to assess whether Musk’s political involvement is compatible with his role as CEO.

With Tesla stock already down over 21% year-to-date, Musk’s latest move has reignited questions about leadership stability and long-term focus. Whether the America Party becomes a political force—or just another distraction—remains to be seen.