TESLA TUMBLES AS MUSK RETURNS TO THE POLITICAL FRAY AMID FEUD WITH DONALD TRUMP

Tesla shares tumbled yesterday as investors fretted over Elon Musk’s latest foray into politics.

The car maker’s billionaire boss said he would start his own political party, in an escalation of his bitter feud with Donald Trump.

Tesla shares fell more than 7 per cent – wiping around £56billion off its value.

The stock is down more than 20 per cent so far this year while Musk’s own fortune has tumbled by more than £50billion.

Dan Ives, an analyst at wealth manager Wedbush, said Musk’s decision to launch the America Party to challenge the Republicans and Democrats is ‘the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story’.

He added: ‘While the core Musk supporters will back him at every turn no matter what, there is a broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track.’

Ives noted there was ‘relief’ from shareholders when Musk left his White House job as Trump’s efficiency czar in May amid a disagreement with the President over his tax-cutting bill.

‘That relief lasted a very short time and now has taken a turn for the worst with this latest announcement,’ he said.

Musk’s return to politics appears to be another distraction from the job of getting Tesla back on track, but there are also fears Trump could hit the company with policies that damage business.

He took to social media on Sunday night to say: ‘I am saddened to watch Elon Musk go completely off the rails, essentially becoming a train wreck.’

2025-07-07T21:16:40Z