Newsweek said that the announcement caused stress in the financial markets, which made investors worry about Musk's political goals and what they could mean for Tesla's image and business.
Musk said on Saturday that he was starting a new political party dubbed the "America Party." On Monday, Tesla shares dropped 6.8%.
The stock of the electric car company finished at $293.94, which was more than $79 billion less than its overall market worth.
Newsweek says that a big part of Musk's wealth comes from his ownership in Tesla, which is now worth about $121 billion. The Bloomberg Billionaires Index says that his overall net worth is currently at $346 billion, down from $361 billion the day before.
Dan Ives, a senior analyst at Wedbush Securities, said that Tesla is at a very important point in its growth path and urged the company's board of directors to take strong action to limit Elon Musk's growing role in politics.
Ives wrote in a recent report that Musk's choice to start a new political party dubbed "America Party" could be a big problem for Tesla as it enters a key development phase driven by self-driving cars and robots.
He stressed that "Tesla is on the verge of a revolutionary future in the fields of autonomous driving and robotics," and Musk can't afford to be preoccupied starting a political party, which takes a lot of time, energy, and political capital. He said that the new party wants to run in the 2026 US midterm elections, which may place Musk in direct conflict with the Trump administration.
Ives thought this political strategy was "completely at odds with what Tesla shareholders want," especially because the business is getting close to a key point in setting up rules for self-driving cars. On Saturday, Musk said he was starting a new political party dubbed the "America Party." On Monday, Tesla shares plunged 6.8%.
The stock of the electric car company finished at $293.94, which is more than $79 billion less than its market worth.
Newsweek says that a big part of Musk's wealth comes from his ownership in Tesla, which is now worth about $121 billion. The Bloomberg Billionaires Index says that his net worth is now at $346 billion, down from $361 billion the day before.
Dan Ives, a senior analyst at Wedbush Securities, said that Tesla is at a crucial point in its growth and urged its board of directors to take strong action to limit Elon Musk's growing role in politics.
Ives wrote in a recent report that Musk's choice to start a new political party dubbed "America Party" could be a big problem for Tesla as it enters a crucial development phase fueled by self-driving cars and robots.
He said that "Tesla is on the verge of a revolutionary future in autonomous driving and robotics, and Musk can't afford to be busy starting a political party, which takes a lot of time, energy, and political capital." He said that the new party wants to run in the 2026 US midterm elections. This might put Musk in direct conflict with the Trump administration.
Ives thought this political strategy was "completely at odds with what Tesla shareholders want," especially because the business is getting close to a crucial point in setting up rules for self-driving cars.
He stressed that "Tesla is on the verge of a revolutionary future in the fields of autonomous driving and robotics," and Musk can't afford to be preoccupied starting a political party, which takes a lot of time, energy, and political capital. He said that the new party wants to run in the 2026 US midterm elections, which may place Musk in direct conflict with the Trump administration.
Ives thought this political strategy was "completely at odds with what Tesla shareholders want," especially because the business is getting close to a key point in setting up rules for self-driving cars. On Saturday, Musk said he was starting a new political party dubbed the "America Party." On Monday, Tesla shares plunged 6.8%.
The stock of the electric car company finished at $293.94, which is more than $79 billion less than its market worth.
Newsweek says that a big part of Musk's wealth comes from his ownership in Tesla, which is now worth about $121 billion. The Bloomberg Billionaires Index says that his net worth is now at $346 billion, down from $361 billion the day before.
Dan Ives, a senior analyst at Wedbush Securities, said that Tesla is at a crucial point in its growth and urged its board of directors to take strong action to limit Elon Musk's growing role in politics.
Ives wrote in a recent report that Musk's choice to start a new political party dubbed "America Party" could be a big problem for Tesla as it enters a crucial development phase fueled by self-driving cars and robots.
He said that "Tesla is on the verge of a revolutionary future in autonomous driving and robotics, and Musk can't afford to be busy starting a political party, which takes a lot of time, energy, and political capital." He said that the new party wants to run in the 2026 US midterm elections. This might put Musk in direct conflict with the Trump administration.
Ives thought this political strategy was "completely at odds with what Tesla shareholders want," especially because the business is getting close to a crucial point in setting up rules for self-driving cars.