Tesla stock prices dropped by 8% during Monday after Elon Musk introduced the “America Party” political organization which raised doubts about his leadership focus and Tesla’s declining sales performance. The political dispute between Musk and President Donald Trump started after Trump mocked Musk’s political initiative while threatening to cut federal funding for Musk’s businesses.
The public disagreement between Trump and Musk resulted in a $150 billion decline of Tesla’s market value during one day.
The second consecutive delivery decline forces Tesla to achieve 1 million vehicle sales during the second half of 2025 to reach last year’s numbers but this goal becomes challenging because of trade challenges and Musk’s political activities. The stock price of Tesla has declined by 35% since December to become the worst performing among the “Magnificent Seven” companies.
The recent controversy has intensified the examination of Tesla’s board members. Azoria Partners postponed their Tesla-focused ETF launch while investors increasingly demand Musk’s board to monitor his business activities and political pursuits.
According to investor James Fishback Elon Musk should dedicate himself completely to Tesla operations. The political diversion poses a risk to operational priorities at Tesla because the EV giant faces existing market challenges.
