Tesla Shares Fall 7% After Musk Launches America Party Amid Trump Feud

Tesla shares dropped nearly 7% following CEO Elon Musk's announcement of forming a new political entity called the America Party, aimed at challenging the traditional two-party system in the U.S. Musk's political engagement, particularly his feud with President Trump and opposition to the recent tax and spending bill, has raised concerns among investors about his focus on Tesla's core business. This political distraction, alongside Tesla’s recent 14% decline in vehicle deliveries and growing competition, has led to a significant loss in market value and investor exhaustion. President Trump criticized Musk’s move as reckless and disruptive, further intensifying their public fallout. Analysts and investors worry Musk’s increasing political involvement will detract from his leadership at Tesla during this critical period. Despite Musk’s prior support for Trump, their relationship has soured, impacting Tesla’s brand perception and investor confidence.