Elon Musk's Political Move Sends Tesla Stock on a Wild Ride
Elon Musk's recent decision to create a new political party has stirred up quite a storm. Tesla's stock took a nosedive, dropping by up to 7.6% in early trading. This happened right after Musk announced his plans, which didn't sit well with former President Donald Trump. Trump wasn't shy about sharing his thoughts, calling Musk's move "ridiculous" and even "off the rails."
Investors Feel the Heat
Investors are feeling the heat. They're worried about two big things:
- More tension between Musk and Trump could mean fewer government perks for electric vehicles.
- Musk might be too busy with politics to focus on Tesla.
Neil Wilson, a market strategist, pointed out that investors were happy when Musk stepped back from politics but are now concerned he's diving back in.
Musk and Trump Clash Again
This isn't the first time Musk and Trump have clashed. Back in June, Musk criticized Trump's big tax and policy bill, saying it would add trillions to the national debt. Trump fired back, saying third parties never succeed in the U.S. and only cause chaos.
Tesla Faces Tough Times
Tesla's been having a tough time lately:
- Sales are down
- Facing stiff competition from other electric vehicle makers
- Reported its first-ever annual sales drop as a public company
- Musk's political involvement has sparked protests outside Tesla showrooms around the world
Musk's Political Involvement
Musk had stepped down from his government role in May, which gave investors hope that he would focus more on his companies. But his feud with Trump and the launch of his new political party have pulled him right back into the political spotlight.
Tesla's stock nearly doubled after the election, but the controversy surrounding Musk's political activities has caused a significant drop in value.