Tesla Shares Slide 7%, Wiping Out $68B in Value After Musk Unveils 'America Party'

Benzinga

Tesla shares dropped nearly 7% Monday, erasing over $68 billion in market value after CEO Elon Musk announced the formation of the “America Party," according to CNBC. Musk said the new party would aim to influence key Senate and House races enough to sway legislation “to serve the true will of the people.” Musk’s political involvement with the Department of Government Efficiency has raised concerns among investors about potential damage to Tesla’s brand. Wedbush analyst Dan Ives warned Musk’s political ambitions are “exactly the opposite direction” Tesla needs now. Tesla is facing challenges beyond politics, including a 14% year-over-year drop in second-quarter deliveries and growing competition in China.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Tesla shares dropped nearly 7% Monday, raising over $68 billion in market value

00:07after CEO Elon Musk announced the formation of the America Party, according to CNBC.

00:12Musk said the new party would aim to influence key Senate and House races

00:16enough to sway legislation to serve the true will of the people.

00:19Musk's political involvement with the Department of Government Efficiency

00:21has raised investor concerns about potential damage to Tesla's brand.

00:25When Bush analyst Dan Eisner and Musk's political ambitions are exactly the opposite direction Tesla needs now.

00:32Tesla is facing challenges beyond politics, including a 14% year-over-year drop

00:36in second quarter deliveries and growing competition in China.

00:40For all things money, visit Benzinga.com.

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