Tesla Stock Slumps 7 Percent as Musk Launches Political Party
(MENAFN) Shares of US-based electric vehicle giant Tesla nosedived on Monday after CEO Elon Musk revealed plans to launch a new political party. As of 1500 GMT, Tesla’s stock had dropped roughly 7.3%, trading at $292.22.
The company’s market capitalization fell to $921.7 billion following the announcement.
Tesla’s stock has tumbled about 20% over the past month, driven largely by escalating tensions between Musk and former President Donald Trump after Congress passed what Trump dubbed the "Big Beautiful bill."
In a significant update Saturday, Musk declared that the newly formed political group will be named the “America Party,” noting that it may target “on just 2 or 3 Senate seats and 8 to 10 House districts.”
Trump responded Sunday, dismissing Musk’s initiative as "ridiculous."
Musk had intensified his criticism of the legislation last week, vowing to create a political party if the divisive omnibus bill gained congressional approval.
In retaliation, Trump suggested the Tesla and SpaceX CEO would “head back home to South Africa” if federal subsidies for electric vehicles were withdrawn.
The president later escalated his rhetoric, saying he would consider deporting Musk amid their renewed conflict over the Republican-backed spending package.
“I don’t know. We’ll have to take a look," Trump told reporters when asked if he would deport Musk.
What was once a cooperative and supportive relationship between the two figures has now devolved into a bitter, public feud since Musk began voicing his opposition to the bill in late May.
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