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 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, and 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. 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's been having a tough time lately. Sales are down, and the company is facing stiff competition from other electric vehicle makers. Last week, Tesla reported its first-ever annual sales drop as a public company. To make things worse, Musk's political involvement has sparked protests outside Tesla showrooms around the world. 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.