Tesla’s Stock Falls As Elon Musk Launches New Political Party

Tesla’s (TSLA) stock is down 7% after Chief Executive Officer (CEO) Elon Musk announced plans to form a new political party in America.

Musk said over the weekend that the party would be called the “America Party” and could focus “on just two or three Senate seats and eight to 10 House districts.”

He suggested this approach would be “enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people.”

The billionaire’s ongoing involvement in the political arena has been a point of contention for Tesla shareholders.

Earlier this year, Musk led the so-called “Department of Government Efficiency” (DOGE) and worked closely with U.S. President Donald Trump on cutting government waste.

However, Musk left DOGE in May and has since had a public falling out with President Trump.

The two have clashed on social media in recent weeks over President Trump’s spending bill, which Musk has said would increase America’s debt.

Musk has also taken issue with cuts to tax credits that support renewable energy sources such as solar and wind, as well as electric vehicles, which Tesla benefits from.

Trump has called out Musk’s move to form a new political party on social media, calling the decision “ridiculous” and adding that the Tesla CEO has gone “completely off the rails.”

Many shareholders have expressed concerns about Musk’s focus on politics at a time when Tesla is struggling.

The electric vehicle maker recently reported a 14% year-over-year decline in its car deliveries in the second quarter, missing expectations by a wide mark.

The company is facing rising competition from other automakers, especially in the key market of China. There is also a consumer backlash against Tesla over Musk’s political involvement.

TSLA stock is down 17% this year and trading at $315.35 U.S. per share.