Tesla shares plunge as investors fear that the new political party Elon Musk will damage the brand | Tesla

Tesla’s actions are moving towards a strong fall in the United States while investors fear that the launch by Elon Musk of a new political party has other problems for the electric car manufacturer.

The Tesla action dropped by more than 7% in pre-commercial exchanges on Monday, threatening to wipe around $ 70 billion (51 billion pounds sterling) on ​​the value of the company at the opening of Wall Street.

If the actions dropped, the value of Musk’s shares would fall from more than $ 9 billion to around $ 120 billion. The Tesla and Space X boss remains comfortably the richest person in the world, with a richness of around $ 400 billion, according to Forbes.

Tesla is evaluated at just under 1 TN, but its actions were under pressure due to the relationship of the CEO of Tesla with Donald Trump.

First, Musk’s solid support for the American president has created a consumer reaction and now the antagonistic turn of his relationship with Trump A, investors, Musk will be distracted from his day work, or that the White House will punish his businesses.

Dan Ives, analyst at Wedbush Securities, said that Musk’s announcement that he finances an American political party will alarm investors.

“Very simply, the plunge of musk policy more deeply in politics and now trying to take the establishment of Beltway is exactly the opposite direction that Tesla’s investors / shareholders want it to take during this crucial period for the history of Tesla,” said Ives, adding that there was a “greatest feeling of exhaustion” will not remain out of politics.

Trump called Musk’s plans on Sunday to form the “ridiculous” American party, launching new barbs to the richest person in the world.

In an article on the Truth Social Tech platform, Trump wrote: “I am saddened to watch Elon Musk go completely” out of rails “, becoming essentially a train wreck in the past five weeks.”

Musk announced the creation of The America Party on its X platform this weekend. He wrote: “When it comes to going bankrupt our country with waste and transplants, we live in a single party system, not a democracy. Today, the American party is formed to make your freedom.”