Musk’s America Party Launch Sends Tesla Stock Into Reverse
If side quests were an Olympic sport, Elon Musk would have more gold medals than Michael Phelps. Following a messy breakup over Trump’s “One Big, Beautiful Bill,” the serial entrepreneur announced his “America Party” over the weekend — but TeslaTSLA shareholders weren’t celebrating, as shares tumbled up to ~8% in premarket trading Monday.
- TSLA has collapsed ~35% since December’s high, making it the runt among the “Magnificent Seven” this year — though it remains up over 20% one year after endorsing Trump.
- Having spent ~$300M on Trump: Part II, the billionaire plans to focus “on just 2 or 3 Senate seats and 8 to 10 House districts” — believing it’s “enough to serve as the deciding vote.”
Political price tag: Tesla’s troubles run deeper than Musk’s latest foray. The company posted a 14% year-over-year decline in Q2 deliveries, missing expectations. Meanwhile, Tesla’s cars are falling behind local competitors in key markets like China, with Beijing no longer viewing Musk’s relationship as an asset, given his Trump fallout. As Wedbush analyst Dan Ives noted, this is “exactly the opposite direction Tesla investors … want him to take,” as they seemingly believe he’s driving Tesla straight into a dead end.