{"id":1127,"date":"2025-07-08T11:04:09","date_gmt":"2025-07-08T11:04:09","guid":{"rendered":"http:\/\/www.logicalware.net\/?p=1127"},"modified":"2025-07-08T19:23:00","modified_gmt":"2025-07-08T19:23:00","slug":"tesla-investors-arent-excited-about-elon-musks-new-political-party","status":"publish","type":"post","link":"http:\/\/www.logicalware.net\/index.php\/2025\/07\/08\/tesla-investors-arent-excited-about-elon-musks-new-political-party\/","title":{"rendered":"Tesla investors aren't excited about Elon Musk's new political party"},"content":{"rendered":"

Tech billionaire Elon Musk says he’s starting a new political party<\/a>, but Tesla investors aren’t thrilled.<\/p>\n

Shares of Tesla plunged nearly 7 percent<\/a> Monday, as markets reacted to Musk’s plans for the “America Party<\/a>,” a third political faction aimed at rivaling Democrats and Republicans, and in response to President Trump’s renewed calls<\/a> for tariffs.<\/p>\n

Prominent Wall Street tech analyst Dan Ives said<\/a> the billionaire entrepreneur’s latest political foray is “exactly the opposite direction that most Tesla investors want him to take” and is “causing exhaustion.”<\/p>\n

“I think the board is going to have to get involved,” Ives, managing director at Wedbush Securities, told Bloomberg TV<\/a> on Monday, adding that Musk is starting to cross “a line in the sand.”<\/p>\n

James Fishback, CEO of investment firm Azoria, said Saturday<\/a> that the firm would be postponing the launch of its Tesla-focused ETF due to Musk’s political party announcement.<\/p>\n

“We deserve a full-time CEO, not someone fixated on sabotaging President Trump,” Fishback, known for proposing “DOGE dividend checks<\/a>,<\/a>” wrote on social platform X.<\/p>\n

Trump was also quick to voice his disapproval on Truth Social<\/a>, saying the Tesla CEO had gone “completely off the rails” and argued that third parties “have never succeeded in the United States.”<\/p>\n

Musk, once a top donor and ally of Trump, had a falling out with the president over the Republicans’ “Big, Beautiful” spending and tax bill<\/a> \u2014 which was signed into law<\/a> on July 4. The Budget Lab at Yale University estimates it could add $3 trillion<\/a> to the nation’s debt over the next decade.<\/p>\n

“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk wrote Sunday on X,<\/a> declaring the formation of the “America Party.”<\/p>\n

The question on Tesla investors’ minds: Where will he find the time?<\/p>\n

Why are Tesla investors worried?<\/h2>\n

Musk’s alliance with Trump was good for Tesla’s stock \u2014 until it wasn’t.<\/p>\n

Shares of Tesla nearly doubled after Election Day, but as Musk’s role in the administration<\/a> grew, so did investors’ concerns<\/a> about his focus, or lack thereof, on the EV giant.<\/p>\n

The Tesla CEO allayed some of those fears<\/a> in May when he left Washington<\/a> and vowed to spend<\/a> “24\/7” at work, even if it meant “sleeping in conference\/server\/factory rooms.”<\/p>\n

But that renewed focus didn’t last long, and the latest political distraction threatens to create new enemies on both sides of the aisle.<\/p>\n

“I think in the view of investors, there’s really no upside,” Ives said Monday, warning that Trump could become a blockade to Tesla’s autonomous vehicle ambitions.<\/p>\n

Ross Gerber, a longtime Tesla investor and vocal Musk critic<\/a>, didn’t hold back online, writing in his own post that<\/a>, “no one wants the Elon first party,” accusing the company’s board of being “Elon vampires sucking the blood of Tesla equity.”<\/p>\n

“Waymo has solved autonomous driving. Meanwhile Elon is starting a new political party,” Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, wrote on X<\/a> over the weekend.<\/p>\n

Why is Tesla struggling?<\/h2>\n

Musk’s new political adventure comes at an especially challenging time for the EV maker.<\/p>\n

Last week, Tesla reported a 13 percent drop<\/a> in global car sales from a year earlier. Part of that decline has been attributed to Musk’s political forays, which have sparked protests<\/a> and alienated many consumers in Tesla’s core market.<\/p>\n

A recent AP-NORC Research Center poll<\/a> found that about half of U.S. adults have an unfavorable opinion of Tesla. Even more, closer to 60 percent have an unfavorable view of the tech billionaire.<\/p>\n

Tesla recently launched<\/a> its robotaxi service in Austin, Texas, and while it’s been generally well-received by passengers, it’s also drawn the attention<\/a> of federal traffic safety regulators after videos surfaced appearing to show driving errors.<\/p>\n

Then there’s the problem of China \u2014 a vital country where Tesla’s market share has shrunk thanks to stiff competition from low-cost local rivals.<\/p>\n

The Wall Street Journal put it bluntly<\/a> Sunday: “Elon Musk Is Running Out of Road in China.”<\/p>\n

But whatever the headwinds, investors want their mercurial CEO at the helm.<\/p>\n

Instead, Musk will be splitting his attention across a range of ventures, including Tesla, SpaceX, the social media platform X, and now, apparently, a political party.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tech billionaire Elon Musk says he’s starting a new political party, but Tesla investors aren’t thrilled. Shares of Tesla plunged nearly 7 percent Monday, as markets reacted to Musk’s plans<\/p>\n

Continue reading <\/use> <\/svg>Tesla investors aren't excited about Elon Musk's new political party<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":1129,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/posts\/1127"}],"collection":[{"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/comments?post=1127"}],"version-history":[{"count":1,"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/posts\/1127\/revisions"}],"predecessor-version":[{"id":1128,"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/posts\/1127\/revisions\/1128"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/media\/1129"}],"wp:attachment":[{"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/media?parent=1127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/categories?post=1127"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.logicalware.net\/index.php\/wp-json\/wp\/v2\/tags?post=1127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}