NEW YORK – Elon Musk’s entry into the political arena has triggered a major financial setback, with Tesla’s market value plunging by nearly $76 billion following his announcement to launch a new political party in the United States.
According to The Guardian, Tesla shares dropped by 7.5% at the opening of trading on Monday, shortly after Musk unveiled plans for the “America Party.”
The sharp decline reflects investor concerns that Musk’s growing political ambitions could divert his focus from Tesla’s operations and future growth.
The move has sparked a wave of criticism including from US President Donald Trump, who dismissed Musk’s political venture as “ridiculous” and launched a scathing attack on social media.
“Elon Musk has completely gone off the rails. He’s become a train wreck,” Trump wrote.
Musk, however, defended his decision on his social media platform X (formerly Twitter), writing: “We are living in a one-party system, not a democracy. The ‘America Party’ is here to restore your freedom.”
The backlash from investors highlights rising anxiety about Musk’s shifting priorities, particularly as he already oversees multiple ventures including Tesla, SpaceX, Neuralink and X.
The analysts warn that further political involvement could undermine investor confidence and slow down Tesla’s innovation and market performance.
QuestioEarlietensions between world richest person and SpecaX chief Elon Musk and US President Donald Trump spilled into space sector, prompting concern from NASA and astronauts alike after Musk publicly threatened to pull SpaceX’s Dragon spacecraft from its government contracts.
The unexpected announcement came amid deepening feud between two men, which are known for their stern stances. Once political allies turned rivals and it stemmed from Trump’s new economic legislation which cuts taxes on Social Security, overtime pay, and tipped wages.
Elon Musk denounced bill as “an abomination,” setting off a war of words with POTUS. In retaliation, Trump criticized Musk’s position and hinted at ending his federal contracts. Musk responded with a bombshell: SpaceX would begin decommissioning the Dragon spacecraft, a critical lifeline that currently ferries astronauts to and from the International Space Station (ISS).
The threat sent shockwaves through the aerospace community. Would NASA move to decommission the ISS earlier than planned? Would it double down on Boeing’s still-unproven Starliner as an emergency backup? Questioned raised amid drama.
Within hours, Musk appeared to walk back his statement. Responding to a user on X who encouraged him to “cool off,” Musk replied: “Good advice. OK, we won’t decommission Dragon.”
While the immediate crisis seems to have been defused, the situation has left many questioning the stability of NASA’s commercial partnerships in the wake of political volatility.
Musk previously been appointed by President Trump to lead the Department of Government Efficiency (DOGE). He however recently taken a step back from that role. His Chief of Staff Susie Wiles confirmed shift, saying Musk is no longer physically present at the White House but still communicates with officials remotely.
