It seems like Elon Musk’s foray into politics with the launch of his “America Party” has made significant waves, not just in the political arena but also in financial markets. Over the weekend, the Tesla CEO’s new political venture led to a sharp decline in Tesla’s stock price, dropping nearly 7% and causing a loss of about $21 per share by the market’s close on Monday.
This move is part of Musk’s ongoing public feud with President Donald Trump, whom he supported with substantial donations during the 2024 presidential campaign. Despite being the world’s richest person, Musk’s net worth reportedly decreased by $15 billion following the party’s launch, as per the Bloomberg Billionaires Index.
Tesla investors have been particularly affected, with the company’s stocks down 31% since Trump’s inauguration earlier this year, contrasting sharply with the S&P 500’s 4% gain over the same period. Adding to investor concerns, Tesla has experienced consecutive quarterly declines in vehicle deliveries in 2025, marking its worst performance since 2022. Neither Tesla nor Musk has commented on these developments so far.
Financial analysts have expressed disapproval of Musk’s political endeavors, with some suggesting that his focus on politics distracts from Tesla’s core business priorities. Wedbush Securities’ Dan Ives noted that investors generally prefer Musk to concentrate on initiatives like the robotaxi rollout rather than engaging deeply in politics. William Blair analysts echoed these sentiments, downgrading Tesla’s stock rating and citing regulatory challenges posed by political developments.
Public sentiment towards Musk has also shifted negatively, with a growing share of Americans expressing unfavorable views, rising from 45% to 55% since the end of 2024, spanning across party lines. Despite these challenges, some analysts, like Philip Bell of Tower K Group, believe that Musk’s potential exit from Tesla to pursue politics might alleviate concerns about founder risk while affirming the company’s innovative DNA.
In summary, Elon Musk’s political aspirations have stirred controversy and market turbulence, prompting mixed reactions from investors and analysts alike regarding their impact on Tesla’s future trajectory.
