In partnership with

Today’s Headline

TSLA: Tesla Stock Plummets After Musk Launches New U.S. Political Party
What happened, why investors are worried, and what it means going forward…

Hey friends,

Big news hit over the weekend — Elon Musk announced the formation of a new political group called the “America Party” on X, following a split with Donald Trump over a recent tax-and-spending bill.

Within minutes, Tesla stock plunged around 7% in pre-market action, wiping out billions in market value. That’s a huge move for a company known more for tech breakthroughs than political drama.

Let’s unpack what this means — and whether this dip could actually open a buying window.

🧠📈 Want to Outsmart the Market? Start by Outsmarting the Noise
Most people are investing blind — distracted by social media, biased news, and headlines designed to trigger emotion, not logic.
1440 gives you an ad-free, no-BS daily rundown of the world’s most important stories in 5 minutes or less.
For investors like us, who need clarity to make sharp money decisions, this is a must-have edge.
👉 Click here to get smarter — and stay ahead of the herd

The Daily Newsletter for Intellectually Curious Readers

Join over 4 million Americans who start their day with 1440 – your daily digest for unbiased, fact-centric news. From politics to sports, we cover it all by analyzing over 100 sources. Our concise, 5-minute read lands in your inbox each morning at no cost. Experience news without the noise; let 1440 help you make up your own mind. Sign up now and invite your friends and family to be part of the informed.

Join for free today!

1. 🧠 What Happened?

• Musk announced he’s forming the "America Party" to oppose what he sees as runaway government spending.

• This sparked a renewed feud with Trump, escalating media attention and investor anxiety.

• Tesla stock dropped ~7.25% in pre-market trading, following a ~27% YTD decline tied earlier to Musk's political distractions.

• Wedbush analyst Dan Ives said investors feel “exhausted” by Musk’s political detours — they want him focused on Tesla, not politics.

2. Why Investors Are Worried

1. Distraction risk
   When a CEO shifts focus, investors worry that core business projects—like Tesla’s self-driving robotaxi—will stall.

2. Regulatory fallout
   Trump has threatened to revoke government contracts or subsidies if Musk continues down this political path.

3. Brand reputation
   A push called “Tesla Takedown” is already targeting Musk’s public image and could hurt sales by politicizing the brand.

4. Competitive and operational challenges
   EV rivals like BYD and Xiaomi are gaining market share, compounding investor concern.

3. Where Tesla Still Stands Strong

Despite the political storm, Tesla’s fundamentals keep delivering:

• Q2 deliveries (~384,000 cars) were slightly below estimates but not disastrous surprisingly.

• Robotaxi and Full Self-Driving (FSD) progress continues, with Austin pilot tests in motion.

• Strong cash and tech lead in batteries, AI, and manufacturing processes remain Tesla’s core strengths.

4. What This Means for Investors

Here’s how I’m approaching it:

5. A Balanced Takeaway

• Musk’s political shift is real and investors notice—especially with Tesla down ~27% YTD.

• But the stock plunge may be an overreaction—Tesla’s technology and delivery numbers haven’t changed fundamentally.

• If you're long-term bullish on EVs and autonomy, a strategic dip-buy around current levels could pay off—if Musk refocuses.

• Still, watch closely—if policy backlash or brand boycotts escalate, it will matter for TSLA’s roadmap.

Final Takeaways

Right now, Tesla is riding high on innovation… but tripping on politics.

If you're confident in Musk's ability to navigate back to business, this dip could be a strategic entry point.

But if you're risk-averse or focused on short-term gains, it may be wiser to wait until things settle—especially if policy threats materialize.

If you'd like support building a strategy around this, or want updates as news evolves, just say the word.

Stay sharp, stay informed, and keep pressure-tested.

[Live Life Grow Wealth]

DISCLAIMER

I make no representations, warranties, or guarantees, whether expressed or implied, that the content provided is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

I am an individual content creator and not regulated or licensed by the Monetary Authority of Singapore (MAS) as I do not provide investment services.

All forms of investments carry risks, including the risk of losing your entire invested amount. Such activities may not be suitable for everyone. You are strongly encouraged to seek advice from a professional financial advisor if you have any doubts or concerns.