It was supposed to be a fresh chapter for Tesla — a year to focus on innovation and rebound from past stumbles.
But once again, Elon Musk’s latest political antics are stealing the spotlight, and investors aren’t exactly thrilled.
As the markets opened on Monday, Tesla shares dropped by as much as 7 percent in pre-market trading.
The sudden dip came just after Musk announced he’s creating a new political party called the “America Party” — and reignited his public feud with none other than his former ally, President Donald Trump.
Investors Sound the Alarm Over Musk’s Focus
Analysts were quick to weigh in. According to Neil Wilson, a UK-based strategist at Saxo Markets, there are two major red flags on investors’ minds.
“First, there’s the fear that Trump might retaliate by targeting EV subsidies.
But the bigger concern is whether Musk is losing focus,” Wilson explained.
For many shareholders, it’s not just about politics — it’s about distraction.
Tesla is in a delicate position, and having its CEO embroiled in a political war doesn’t exactly inspire confidence.
Musk Slams Trump’s Economic Plan
Musk didn’t hold back. He took aim at the Trump administration’s newly passed economic legislation — colorfully dubbed the “One Big, Beautiful Bill” — which carries a potential $5 trillion price tag.
The Tesla boss slammed it as reckless spending that could add trillions to the federal deficit.
Taking to X (formerly Twitter), Musk posted sarcastically, “What the heck was the point of DOGE if he’s just going to increase the debt by $5 trillion?”
Trump Fires Back with Personal Jabs
Trump wasn’t about to stay silent.
In a scathing post on his Truth Social platform, the former President declared, “I am saddened to watch Elon Musk go completely off the rails — essentially becoming a TRAIN WRECK over the past five weeks.”
Just a few months ago, Musk had pledged to take a step back from politics and refocus on Tesla, a move that briefly reassured investors and sent the stock on an upward climb.
That optimism now feels short-lived.
Tesla’s Make-or-Break Year Gets Even Tougher
This was supposed to be a pivotal year for Tesla.
The company has been grappling with slower EV sales and delays in launching key products.
Meanwhile, a recently passed Republican tax bill removes incentives for EV buyers, potentially hurting demand even more.
To stay competitive, Tesla has finally started rolling out its long-awaited self-driving technology.
The first autonomous Tesla vehicles hit the roads in Texas at the end of June — a milestone that should have dominated headlines.
But the spotlight is elsewhere, thanks to Musk’s political battles.
Once-Strong Alliance with Trump Turns Into a Feud
The fallout between Musk and Trump is especially striking given their earlier alliance during the 2024 presidential campaign.
That partnership now appears to be unraveling in public view.
Just a few weeks ago, Musk slammed the GOP’s tax legislation as a step toward “debt slavery” and vowed to support candidates who challenge Trump’s picks in the primaries.
Trump’s response?
He hinted at launching investigations into Musk’s businesses — and even floated the idea of deporting the billionaire, who was born in South Africa.
Déjà Vu for the Stock Market
This isn’t the first time their feud has rattled Tesla’s share price.
Back in late June, a similar clash triggered a sharp sell-off.
Monday’s drop followed the same pattern, ending the day with Tesla stock down more than 5 percent.
Still, some analysts remain unfazed by the rollercoaster ride.
Volatility Is Just Part of the Tesla Experience
“For Tesla investors, volatility is a way of life,” said Bret Kenwell, an analyst at eToro, in an interview with DailyMail.com.
Despite the turbulence, Tesla remains a tech giant with a valuation near $1 trillion.
Investors may grumble, but many have learned to take the wild swings in stride — even when they’re tied to Musk’s personal and political adventures.
What Comes Next?
As Musk digs deeper into politics and Tesla continues navigating a tricky EV landscape, one thing is clear — the drama isn’t over.
Whether the company can thrive amid all the noise depends largely on whether Musk decides to steer back toward innovation… or keep fueling the political fire.
