Elon Musk, the CEO of Tesla, has launched a new political party named the America Party, increasing investor concerns amid declining Tesla deliveries. Following the announcement on October 2, 2023, Tesla’s stock fell nearly 7%, contributing to a 35% decrease from its December highs.
The America Party aims to contest a few House and Senate seats, emerged after Musk criticized a recent budget by Donald Trump, and comes at a time when Tesla reported another drop in quarterly deliveries, with Q2 sales missing Wall Street expectations. Competitors like General Motors and BYD have reported significant growth, highlighting Tesla’s struggles in the EV market.
Investors are increasingly worried that Musk’s political pursuits might distract him from addressing Tesla’s core challenges, including falling deliveries and rising competition, especially as other automakers continue to innovate and expand.
