On Monday, Elon Musk, the CEO of Tesla, disclosed plans to start a new political party, which caused the stock to drop approximately 8%.
The “America Party,” Musk declared over the weekend, would concentrate “on just 2 or 3 Senate seats and 8 to 10 House districts.”
He proposed that this would be “sufficient to act as the final vote on controversial legislation, guaranteeing that they reflect the actual wishes of the people.”
A source of dissatisfaction for investors has been the billionaire’s political participation.
Musk worked closely with President Donald Trump while he was a member of the so-called Department of Government Efficiency earlier this year; this decision is seen to have harmed Tesla’s brand. When Musk departed DOGE in May, Tesla’s shares rose.
Source (CNBC)
