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Tesla Shares dip 3% after Elon Musk reveals political party plans

Tesla’s stock dropped by over 3% on Monday following Elon Musk’s announcement that he plans to launch a new U.S. political party — a move that has sparked concerns among investors about…

By Modupeola Showunmi 1 min Jul 7, 2025

Tesla’s stock dropped by over 3% on Monday following Elon Musk’s announcement that he plans to launch a new U.S. political party — a move that has sparked concerns among investors about his focus on the company.

The news also heightened tensions between Musk and former President Donald Trump, marking a fresh chapter in their ongoing rivalry.

According to Reuters, Tesla shares fell in Frankfurt trading, signaling another potential dip when U.S. markets reopen after the Independence Day holiday weekend.

Dan Ives, a veteran tech analyst at Wedbush, told Reuters that Musk’s political ambitions could weigh heavily on Tesla’s stock.

“Musk is Tesla’s biggest strength. But diving into politics again, especially while clashing with Trump, could hurt investor confidence,” Ives said in a note on Sunday.

He added that it wouldn’t be surprising if Tesla’s board eventually steps in, depending on how far Musk pursues his political goals.

Meanwhile, Trump dismissed Musk’s “America Party” plan as “ridiculous” on Sunday, criticizing the tech mogul and suggesting a conflict of interest had existed when Musk’s ally was chosen to lead NASA, given Musk’s business ventures in space.

Tesla Shares dip 3% after Elon Musk reveals political party plans

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