Tesla Inc. shares tumbled 6.8% on Monday (July 7), erasing more than $68 billion in market cap, after CEO Elon Musk revealed plans to launch a new political party — the “America Party.”
The move, announced over the weekend, reignited a public feud between Musk and former ally President Donald Trump, escalating investor concerns about the company’s future direction.
The steep drop marks one of the worst single-day performances for Tesla this year and comes amid growing concerns that Musk’s political ambitions could further distract from his role as chief executive of the electric vehicle giant.
$15 billion lost in a day
Tesla’s stock slide wiped out $15.3 billion from Musk’s net worth, according to the Bloomberg Billionaires Index. The fall marked the largest since Musk’s earlier clash with Trump in June, when their spat over a Republican tax bill erased $150 billion from Tesla’s market value in a single day.
Trump threatens subsidies as feud grows
Trump lashed out at Musk’s political ambitions, calling the idea of the “America Party” “ridiculous.” He also threatened to cut off federal subsidies to Musk’s companies, deepening fears among investors.
Wall Street lower on tariff fears
The market turmoil wasn’t limited to Tesla. Wall Street saw widespread losses as the White House issued tariff notices to key allies, including Japan and South Korea, threatening import duties of up to 40% starting August 1. The S&P 500 dropped 0.8% — its biggest loss since mid-June — while the Dow fell 422 points (0.9%) and the Nasdaq slid 0.9%.
