Tesla Shares Take a Hit as Musk Ventures into Politics with ‘America Party’
Tesla shares took a significant hit, dropping nearly 7% on Monday. This came in the wake of CEO Elon Musk‘s announcement of the formation of a new political party, dubbed the ‘America Party.’ This marks Musk’s latest venture into the political sphere, amidst an ongoing public dispute with President Donald Trump.
The electric vehicle giant saw a loss of more than $68 billion in market capitalization. This followed Musk’s weekend announcement that he was launching the new party to challenge both the Republicans and Democrats. Trump dismissed Musk’s move as ‘ridiculous,’ stating that the Tesla CEO had gone ‘completely off the rails.’
This political development surfaces at a challenging time for Tesla. The company reported a 13% drop in global car sales in the second quarter, compared to the previous year. Analysts have voiced concerns that Musk’s political endeavors are diverting attention from Tesla’s business operations during a pivotal period for the company’s growth.
Source: CNBC