- Elon Musk said he would form a new political party called the “America Party.”
- Tesla shares fell Monday after Musk’s announcement.
- Tesla shareholders have wanted Musk to stay away from politics, especially after his stint at the so-called Department of Government Efficiency, which many have said damaged the automaker’s brand.
Tesla stock fell nearly 7% on Monday after CEO Elon Musk announced plans to form a new political party.
The electric vehicle company lost more than $68 billion in market cap.
Musk said Saturday that the party would be called the “America Party” and could focus “on just 2 or 3 Senate seats and 8 to 10 House districts.” He suggested this 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 involvement in politics has been a point of contention for investors. Musk earlier this year was instrumental in the so-called Department of Government Efficiency and worked closely with President Donald Trump — a move seen as potentially hurting Tesla’s brand.
Musk left DOGE in May, which helped Tesla’s stock.
Source: https://www.cnbc.com/2025/07/07/tesla-tsla-shares-today.html