Elon Musk: In today’s time, when the world is moving rapidly towards technology, people get attached to innovative brands like Tesla not only business-wise but also emotionally. As soon as Elon Musk’s name comes up, it is common to imagine the future, of space technology and electric vehicles.
Why are investors afraid of Elon Musk’s America Party
Tesla Inc.’s shares saw a huge decline on Monday morning. Tesla’s shares fell nearly 7% to 291.96 in pre-market trading. Although by 6:29 am it recovered a bit to 294.59, it had still shown a decline of 6.23% compared to the previous closing price of 315.35 dollar on Friday. This decline was seen when Elon Musk announced a new political party called “American Party” on social media.
Musk said that this party will be a strong alternative against the uniparty which is a coalition of Republicans and Democrats. He posted on Sunday, “By a factor of 2 to 1, you want a new political party and you shall have it! …Today, the America Party is formed to give you back your freedom.” After this statement of his, there was a stir in the investor community of America and an atmosphere of concern prevailed in the market.
This is not the first time that Musk has shown interest in politics
Elon Musk has been making political comments on social media before, but now that he has officially talked about forming a new party, investors are afraid that his attention may be diverted from Tesla and other businesses. Getting entangled in political interference and controversies can sometimes prove to be harmful for a big business brand, and perhaps this fear is haunting Tesla shareholders.
Excellent in the past years, but decline in 2025
Tesla shares have given investors a return of more than 206% in the last five years, and a growth of 24.67% has also been seen in the last one year. However, since the beginning of 2025, this stock has fallen by 16.86%. It did see a gain of 2.19% in the last month, but a decline of 2.79% has been registered in the last five trading days.
This year, the 52-week high of Tesla shares has been dollar 488.54, while the low was reached at 182 dollar. Currently, the company’s market cap is reported to be around 1.01 trillion dollar.
Will politics affect Tesla’s future
Tesla shareholders have always been confident that Elon Musk will take the company to new heights of innovation. But when the same person openly talks about starting a political party and starts expressing electoral views on public forums, it is natural for investors to be worried. Especially when America’s political policies directly affect technology companies.
However, it is difficult to say what effect this move of Elon Musk will have in the long run. But the stir in Tesla’s stock market at the moment is an indication that investors have become quite alert.
Disclaimer: This article is written for educational and information purposes only. The information given in it is based on media reports and publicly available data. Consult a certified financial advisor before investing as market conditions can change rapidly.
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