Tesla punished by Wall Street as company loses staggering single-day sum
Tesla stock went on a big tumble Monday — largely because of Elon Musk’s latest foray into politics.
Shares in the EV maker slid 6.79 percent on Monday’s, days after Musk revealed he’s launching a new political party, the ‘America Party,’ and reigniting his feud with former boss President Donald Trump.
The company lost $68 billion in market cap.
‘I am saddened to watch Elon Musk go completely “off the rails,” essentially becoming a TRAIN WRECK over the past five weeks,’ the President wrote.
Until recently, Musk had promised to retreat from politics and refocus on Tesla.
That pledge sent shares soaring in May, with investors hopeful the company could finally stabilize after months of slumping EV sales and missed product deadlines.
This is an important year for Tesla. Automotive industry analysts have been worried about EV sales because the Republican bill ends the tax credit handed to EV consumers.
Meanwhile, the company is rolling out its long-delayed self-driving technology, with the first automonous vehicles reaching Texas roads in late June.
But investors have watched as tensions between Trump and Musk, two men who forged an improbable political coalition in the 2024 Presidential election, cratered that once sky-high stock price.
In late June, Musk said the Republican tax bill would send the country into ‘DEBT SLAVERY,’ and vowed to bankroll primary challenges against Trump-endorsed candidates.
At the time, Trump hit back with a series of threats, suggesting the federal government could launch investigations into Musk’s companies.
Over the weekend, Musk said he created a new political party – but the businessman would have to file paperwork with elections officials
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He even hinted at deporting Musk, who was born in South Africa.
That clash sent Tesla’s stock on a similar downward trajectory.
Monday’s market drop mirrors the fallout from that earlier spat, with shares ultimately ending that day down more than 5 percent.
Still, some analysts aren’t concerned. They believe investors have gotten used to this type of price fluctuation.
‘For Tesla investors, volatility is a way of life,’ Bret Kenwell, an investment analyst at eToro, told DailyMail.com.
‘While the path has been bumpy, it’s been rewarding, with Tesla still sporting a market cap of almost $1 trillion.’
Tesla didn’t immediately respond to a request for comment.
