TSLA: Tesla Stock Nosedives 7% After Elon Musk Vows to Start His Own Political Party

EV maker’s shares washed out close to $70 billion while Musk got $15 billion poorer. Trump said his former ally is a “train wreck” and called his new gig “ridiculous.”

🚨 Tesla Stock Tanks 7%

• Tesla shares TSLA closed down 6.8% on Monday, erasing close to $70 billion in market value in a single session as investors recoiled at Elon Musk’s latest headline-grabbing political turn.
• The drop drags Tesla’s decline to about 14% over the past five weeks — all while Musk has repeatedly clashed with former ally Donald Trump, fanning fears that politics could distract from Tesla’s core business.
• Musk himself saw his net worth shrink by about $15 billion on Monday alone as traders dumped Tesla stock on worries the CEO’s new “America Party” venture could add more volatility to an already bumpy year.

💼 Musk’s Political Pivot: “America Party”

• Over the weekend, Musk announced the formation of the “America Party,” which he claims would target just “2 or 3 Senate seats and 8 to 10 House districts” — enough, he says, to be the swing vote on key legislation.
• On X, Musk framed the new political vehicle as a fight to “give you back your freedom,” blasting what he calls a “one-party system” that bankrupts the country with waste and corruption.
• But the move only deepened investor unease over his growing political entanglements, just as Tesla faces mounting competition, softening demand, and an uncertain path for its self-driving dreams.

👊 Trump Slams Musk as a “Train Wreck”

• Trump wasted no time blasting his on-and-off ally, writing on Truth Social that Musk had gone “completely off the rails,” describing the billionaire as “essentially becoming a TRAIN WRECK over the past five weeks.”
• The public spat comes at a sensitive moment for Musk who recently said he plans to devote his time to Tesla and help build out new products like the self-driving taxi, which didn’t impress with much at launch.
• The big worry now? That Musk’s fresh “America Party” saga will keep adding headline risk and potential distractions — just when Tesla needs every ounce of focus to keep its lead in the EV race.