‘Elon Has Gone Too Far’: Tesla Stock Tumbles as Investors Grow Exhausted With Musk’s Political Antics

Elon Musk’s plan to take on Republicans and Democrats with a new political faction is already receiving blowback from Tesla investors who just want the billionaire businessman to focus on his day job. Shares of the electric vehicle company dropped nearly 8 percent during Monday morning trading, just hours after the Tesla head pitched his “America Party” on X. If the slide holds, it marks the largest Tesla stock decline since Mr. Musk’s explosive online feud with President Trump last month. Mr. Musk unveiled his new political party late Saturday night after polling X users on their interest in “independence from the two-party” system. He later wrote that the party’s immediate focus will be on the House and the Senate, though “backing a candidate for president is not out of the question.” The party sprung out of Mr. Musk’s falling out with President Trump over the spending and tax bill earlier in June. The stock tumble was largely predicted by Wall Street honchos who responded to Mr. Musk’s weekend announcement with concern. A Tesla analyst at Wedbush Securities, Dan Ives — a longtime Tesla bull — lamented to investors on Sunday that Mr. Musk’s decision to dive “deeper into politics” is “exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story.” The chief executive officer of investment firm Azoria shared a similar sentiment, announcing on Sunday his group would postpone its planned public listing of a Tesla ETF. James Fishback wrote on X that the decision “comes in direct response” to Mr. Musk’s new political party, which “creates a conflict with his full-time responsibilities as CEO of Tesla” and “diverts his focus and energy away from Tesla’s employees and shareholders.” He added: “Elon has gone too far.”Backlash over Mr. Musk’s new political party comes as Tesla has already taken a beating over its chief executive officer’s meddling in American politics. Tesla’s shares have dropped 28 percent over the past year amid worries that Mr. Musk was spending too much time at the White House in addition to kickback from consumers over Mr. Musk’s ties to the president. Mr. Musk appeared to quell investor unease in May with his departure from DOGE, though “that relief lasted a very short time and now has taken a turn for the worse with this latest announcement,” Mr. Ives wrote in his letter. Upon his return to Tesla Mr. Musk sent fresh shockwaves through Wall Street by engaging in a very public, very ugly online feud with the president, during which he claimed that Mr. Trump was “in the Epstein files,” among other accusations. Mr. Musk’s continued political antics have left many investors with a “sense of exhaustion,” according to Mr. Ives. Despite Tesla’s ongoing difficulties, Mr. Musk has shot down speculation that his position as chief executive officer is in jeopardy. In May, the billionaire businessman rejected a Wall Street Journal report claiming that the company’s board had initiated a search for a new head as “absolutely false.” The board has yet to respond to Mr. Musk’s latest announcement, though on Sunday Secretary Bessent predicted its members might not be thrilled. “I imagine that those board of directors did not like this announcement yesterday and will be encouraging him to focus on his business activities, not his political activities,” he said.

‘Elon Has Gone Too Far’: Tesla Stock Tumbles as Investors Grow Exhausted With Musk’s Political Antics

‘Elon Has Gone Too Far’: Tesla Stock Tumbles as Investors Grow Exhausted With Musk’s Political Antics

More from the New York Sun

The Unlikely Afterlife of ‘Come On Eileen’

Sotomayor v. Plain Language

The Day After the Fed Rate Hike, Financial Markets Applaud Kevin Warsh, Who Keeps Trump’s Confidence

Could Trump Bring a Surprise Guest to His Parley at the UN?

El-Sayed Tries To Sidestep Furor Over Hasan Piker’s Al Qaeda Comments — Says He’s More Concerned About Trump’s ‘Dangerous Policies’

GOP Congresswoman in Deep-Red District Faces Backlash Over New Ad Bashing Trump’s Immigration Policies

President Xi, a Week Before White House Summit, May Be Showing the Strain of Diplomacy

An Acquittal for the Vandal of Churchill’s Statue

More from the New York Sun

The Unlikely Afterlife of ‘Come On Eileen’

Sotomayor v. Plain Language

The Day After the Fed Rate Hike, Financial Markets Applaud Kevin Warsh, Who Keeps Trump’s Confidence

Could Trump Bring a Surprise Guest to His Parley at the UN?

El-Sayed Tries To Sidestep Furor Over Hasan Piker’s Al Qaeda Comments — Says He’s More Concerned About Trump’s ‘Dangerous Policies’

GOP Congresswoman in Deep-Red District Faces Backlash Over New Ad Bashing Trump’s Immigration Policies

President Xi, a Week Before White House Summit, May Be Showing the Strain of Diplomacy

An Acquittal for the Vandal of Churchill’s Statue