Tesla shares dropped 7.5% Monday after CEO Elon Musk announced plans to launch a new U.S. political party, according to Reuters. The announcement intensified concerns over his focus on the company. The move followed a public clash with Trump over tax and spending policy, fueling investor unease. Traders holding short positions in Tesla stand to gain approximately $1.4 billion in paper profits at a share price of $296, according to Ortex. Tesla stock has fallen more than 21% year-to-date. On June 5, short sellers earned over $4 billion when the Musk-Trump feud triggered Tesla’s steepest single-day drop in value.
