Tesla Shares Decline Following Musk’s Political Ambitions
Tesla’s stock (NASDAQ: TSLA) fell 7% on Monday after Wedbush analyst Dan Ives expressed concerns over CEO Elon Musk’s plans to launch a new political party. Ives warned that Musk might jeopardize a $1 trillion opportunity in autonomous vehicles and suggested the Tesla board implement oversight of Musk’s political activities to align better with investor interests.
Santa Clara, CA-based Tesla has seen its stock plummet 25% year-to-date amid declining deliveries. In Q1 2025, Tesla delivered 323,800 Model 3/Y vehicles and 12,881 units of other models, down from highs of 439,975 and 22,915, respectively, in Q3 2024. The upcoming Q2 earnings report on July 23 is expected to reveal a revenue decline from $21.3 billion in Q1 2024 to $19.33 billion.
Musk has expressed his opposition to new federal spending legislation that he claims undermines the electric vehicle market by eliminating affordable EV mandates. He has not yet registered a political party but aims to position the America Party as a counter to established political norms.
