Shares of Electric Vehicle manufacturer Tesla Ltd. fell as much as 7% in pre-market trading on Monday, July 7, after its founder and CEO Elon Musk announced a new political party over the weekend.After 65% users on “X” voted in favour of his question on whether he should launch a new political party, Musk, the world’s richest man, announced the formation of the “America Party”, which is being created “to give back your freedom.”
Musk has been a vocal critic of the One Big Beautiful Bill over concerns that it nullifies all the work that his Department of Government Efficiency (DOGE) had done in the initial months of the Trump administration.
Tesla’s shares had tanked as its brand image took a beating after Musk’s involvement with the Trump government and shareholders had warned him to return to the business. Shares recovered after Musk called time on his DOGE stint and announced that he will focus his attention on running his businesses, which span across Tesla to Space X.
Musk said over the weekend 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.”Trump on Sunday called Musk’s move to form a political party “ridiculous,” adding that the Tesla boss had gone “completely off the rails.” The President also said that Musk was completely aware of his aversion to the EV mandate.
Musk has been a vocal critic of the One Big Beautiful Bill over concerns that it nullifies all the work that his Department of Government Efficiency (DOGE) had done in the initial months of the Trump administration.
Tesla’s shares had tanked as its brand image took a beating after Musk’s involvement with the Trump government and shareholders had warned him to return to the business. Shares recovered after Musk called time on his DOGE stint and announced that he will focus his attention on running his businesses, which span across Tesla to Space X.
Musk said over the weekend 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.”Trump on Sunday called Musk’s move to form a political party “ridiculous,” adding that the Tesla boss had gone “completely off the rails.” The President also said that Musk was completely aware of his aversion to the EV mandate.
Tesla’s car deliveries during the quarter declined by 14% on a year-on-year basis. It is facing tough competition from other car manufacturers, like BYD, whose sales in recent times have regularly outperformed Tesla.
Shares of Tesla are currently trading 7% lower pre-market. The stock is still down 17% so far in 2025 so far.
(With Inputs From Agency)
