Tesla shares fell steeply Monday after CEO Elon Musk vowed to form a new US political party.
Musk’s pledge to create the “America Party” stemmed from his rift with President Donald Trump, especially over his criticism of Trump’s sweeping tax-and-spending package. Analysts warned that forming a new party could hurt Musk’s businesses; Tesla’s stock price fell nearly 7% Monday.
Tesla investors “only see downside from his dip back into politics,” one analyst said. Musk’s split with Trump could also hurt the EV company’s business in China: The billionaire and former White House adviser was once seen as a “partner for Beijing in Washington,” The Wall Street Journal wrote, but he is of less value to the Chinese government as an outsider.
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