Tesla Inc. shares witnessed a steep decline of 7 per cent in the early hours of trading on Monday after Tesla CEO Elon Musk announced the creation of a new political party, “The America Party”. The move, which comes days after the US Congress passed President Donald Trump’s “One Big Beautiful Bill”, triggered concerns among investors about Musk’s growing involvement in politics and its potential impact on Tesla’s future.
The dip comes amid increased market volatility surrounding Musk’s political moves, which many investors view as a potential distraction from Tesla’s core business operations. The market reaction was swift with Tesla shares tumbling the moment US premarket trading began.
Musk’s announcement of floating a new political party came through a series of posts on X, where he criticised the two-party system in the US and positioned his new party as a viable alternative to what he termed as the “Republican/Democrat Uniparty”.
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