Musk's New Political Aspiration Shakes Tesla's Future
Tesla shares sharply declined as CEO Elon Musk announced the launch of the 'America Party', sparking concerns over his focus. The new political venture follows Musk's public altercation with Trump, further pressuring Tesla's already dwindling stock performance. Shareholders and the board face challenges assessing Musk's dual commitments.
Tesla shares plummeted nearly 8% after Elon Musk revealed his plan to launch a new U.S. political party, renewing doubts about his dedication to Tesla amid its sales downturn. This political maneuver comes on the heels of a quarrel with former ally President Trump over economic policies.
Trump has threatened to withhold significant federal subsidies due to their public spat. As Tesla reported consecutive quarterly delivery declines, its stock value took a hit, becoming the poorest performer among the 'Magnificent Seven'. Investors, like Shawn Campbell, are keen on Musk refocusing on Tesla rather than his political aspirations.
The situation puts Tesla's board under the spotlight, with calls for assessment on whether Musk's political activities align with his CEO responsibilities. Despite criticism, the board seems reluctant to restrict Musk's external pursuits, which include piloting multiple companies alongside his latest political endeavor.
(With inputs from agencies.)
Google News