Tesla Stock Drops Amid Musk-Trump Political Feud

Tesla shares fell by as much as 7% in pre-market trading after CEO Elon Musk announced the formation of a new political group, the 'America Party,' intensifying concerns among investors. President Donald Trump publicly criticized Musk's move, calling it 'ridiculous' and warning it would cause disruption and confusion. Investors are now worried that Musk's political activities could distract from his leadership at Tesla and potentially jeopardize the company's access to government subsidies. Some investors and analysts have called for Tesla's board to scrutinize whether Musk's political ventures align with his responsibilities as CEO. The company’s stock has already declined over 20% in 2025, with investor unease exacerbated by falling vehicle deliveries and broader company performance issues. The public feud between Musk and Trump has heightened uncertainty about Tesla’s future.