Tesla Stock Plunges Amid Musk-Trump Political Feud

Tesla shares plunged nearly 7% on Monday, wiping out over $68 billion in market value, after CEO Elon Musk announced the formation of the 'America Party,' escalating his public feud with President Donald Trump. Trump criticized Musk by calling him a 'train wreck' and threatened to cut off federal subsidies and EV tax credits, intensifying concerns over political and regulatory risks for Tesla. Investors and analysts fear Musk's political ambitions are distracting him from Tesla at a time of declining sales and growing competition. Tesla's stock is down nearly 40% from December highs, with the decline partly attributed to Musk's polarizing political activity. The turmoil has also contributed to broader market losses, amplifying the impact beyond Tesla. Analysts warn that Musk's actions may further destabilize Tesla’s outlook and alienate shareholders.