Tesla's Stock Plunges as Elon Musk Forms America Party, Attacks Trump

Tesla's CEO Elon Musk has made headlines with his recent announcement of a new political party, the America Party, and his scathing attacks on President Donald Trump. The move has sent Tesla's stock price plummeting, with shares tanking 8 percent to $295 a share. Musk's decision to engage in politics has raised concerns among investors, who worry that it may distract from his duties as CEO.

As Musk continues to trade barbs with Trump on social media, analysts are weighing in on the potential impact on Tesla's stock. Dan Ives, an analyst from Wedbush Securities, warned that Musk's involvement in politics could hurt the company, saying that Tesla needs its CEO to focus on running the business rather than getting involved in politics.

Key Takeaways:

Elon Musk has launched the America Party, a new political party that he claims will give Americans back their freedom and challenge the "one-party system" in the US.
Musk's decision to form a new party has sent Tesla's stock price plummeting, with shares tanking 8 percent to $295 a share.
Analysts are warning that Musk's involvement in politics could hurt the company, as it may distract him from his duties as CEO.
Musk has been trading barbs with President Donald Trump on social media, with Trump labeling Musk a "train wreck" and Musk responding with a series of scathing attacks.
Tesla's relationship with Trump has been complicated in the past, with Musk's efforts to slash US debt clashing with Trump's Big Beautiful Bill.
Dan Ives, an analyst from Wedbush Securities, warned that the Tesla board may get involved if Musk's involvement in politics becomes too extensive.

Statistics:

Tesla's stock price has plummeted 8 percent to $295 a share.
Musk's new party, the America Party, has yet to release any details on its platform or policies.
The US national debt has increased by $5 trillion under Trump's presidency, according to Musk.
Trump's Big Beautiful Bill has been forecasted to increase US debt by $5 trillion.
Musk has over 100 million followers on X, which he used to announce the launch of the America Party.

Sources:

(https://www.thedailybeast.com/elon-musk-makes-his-long-threatened-america-party-official/)
(https://www.thedailybeast.com/trump-goes-nuclear-on-train-wreck-elon-as-maga-feud-gets-nastier/)
(https://x.com/elonmusk/status/1941584569523732930)
(https://uk.finance.yahoo.com/quote/TSLA/history/)
(https://www.reuters.com/business/autos-transportation/tesla-shares-fall-musks-america-party-riles-investors-2025-07-07/)
(https://www.thedailybeast.com/musk-takes-a-swipe-at-tesla-investors-demanding-he-work-regular-hours/)