Tesla's Wild Ride: Musk's Political Ambitions Roil Investor Confidence
Tesla shares plunged 7% after CEO Elon Musk launched a new political party, the America Party. Amidst a clash with President Trump and declining vehicle deliveries, investor fears over Musk's focus on Tesla intensified, exacerbated by the potential loss of government subsidies due to political distractions.
In a volatile market reaction, Tesla shares nosedived nearly 7% on Monday morning. The drop followed Tesla CEO Elon Musk's announcement of a new political venture, the America Party, which has sparked renewed investor fears over his ongoing commitment to the electric vehicle giant.
The announcement further strained Musk's already tumultuous relationship with former president Donald Trump. This feud comes at a critical time as Tesla struggles with declining vehicle deliveries, causing its stock to nosedive over 21% this year alone. The two public figures had previously clashed in June over tax policies.
Investor apprehension continues to mount, with concerns Musk might become too distracted by political affairs, thus impacting Tesla's operational focus. Amidst these worries, investment firms have delayed projects like a Tesla-focused exchange-traded fund, indicating increasing market jitters.
(With inputs from agencies.)
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