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Tesla shares fall as Musk's 'America Party' riles investors

UNITED STATES, JUL 8 – Tesla shares dropped 7% after Elon Musk announced the 'America Party,' causing investor concern about political distractions and a $68 billion market value loss, analysts said.

  • Elon Musk revealed on Saturday that he is launching a new political party in the United States called the America Party.
  • The announcement followed Musk's increasing political involvement and earlier tensions with President Trump over a recent tax spending bill.
  • Tesla shares plunged about 7% on Monday, the stock's worst single-day loss since June 5, amid growing investor concerns about Musk's political distractions and foreign interference anxieties.
  • Musk disclosed that the America Party plans to concentrate on winning a small number of Senate seats—around two or three—and several House districts, approximately eight to ten, to play a pivotal role in shaping important legislation and potentially act as tie-breaking votes on divisive bills.
  • The political move and resulting market reaction signal increased uncertainty for Tesla's future as investors fear Musk's divided focus could affect company performance and government EV subsidies.
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Tesla vacilles. While Elon Musk has just launched his own political party, his company has dropped heavily on the stock market. Between polemics, collapse of sales and exasperation of investors, the boss of...

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Investor's Business Daily broke the news in on Sunday, July 6, 2025.
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