Tesla shares slump amid Elon Musk’s America Party and President Trump drama
Tesla shares drop as ‘investors worry about two things’
- Tesla shares dropped by nearly seven per cent in pre-market trading on Monday following CEO Elon Musk's announcement of plans to launch a new American political party.
- The drop reflects renewed investor apprehension regarding Musk's focus on Tesla, especially as the electric vehicle manufacturer is already contending with declining sales.
- Musk's political venture, the “America Party”, comes after a public disagreement with Donald Trump concerning a tax cut and spending bill, which escalated into a social media dispute.
- Neil Wilson, UK investor strategist at Saxo Markets, highlighted two main concerns: “one is more Trump ire affecting subsidies and the other, more importantly, is a distracted Musk.”
- Investors and analysts are expressing "a sense of exhaustion" over Musk's political immersion, prompting questions about the Tesla board's ability to manage his outside ventures.