Tesla shares slump after Elon Musk announces new political party
The move drives another wedge between Mr Musk and US President Donald Trump, who criticised the Tesla chief's plan to challenge the country's existing two-party political system on his own social media platform.
"The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds!" said President Trump in a Truth Social post on Sunday (July 6).
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.
"I think it's ridiculous to start a third party. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it's always been a two-party system, and I think starting a third party just adds to confusion," he told reporters the same day.
A day earlier on Saturday (July 5), Mr Musk said a poll he conducted on his own social media platform, X, showed resoundingly that Americans want a third political party.
"By a factor of 2 to 1, you want a new political party and you shall have it," he posted on X.
"When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom."
By noon on Monday, however, Tesla stock had fallen by 7.6 per cent or about $21 per share, seemingly due to fears from investors that politics would damage the Tesla brand, wiping about US$15 billion (A$23.05bn) from the market value of the US electric car maker, although Mr Musk remains the world's richest person.
At the close of NASDAQ stock exchange trading yesterday, Tesla shares were down by US$21.41 or 6.79 per cent, to US$293.94, and are now down by about 14 per cent since early June, when Mr Musk first publicly criticised President Trump and the Republican-backed One Big Beautiful Bill.
Tesla stocks are down 31 per cent since Mr Trump's inauguration in January, and the company last week reported almost 14 per cent fewer deliveries in the second quarter of this year.
In its worst sales performance since 2022, Tesla has now posted two consecutive quarterly declines in vehicle deliveries in 2025, amid controversy and protests about Mr Musk's previous involvement with the Trump administration and the Department of Government Efficiency (DOGE).
After donating at least US$277 million (A$425.04m) to the Trump camp during the 2024 US election campaign and then heading up DOGE, the CEO of both Tesla and SpaceX began a very public feud with President Trump when he said the administration's new funding bill would plunge Americans into debut for generations to come.
Signed into law on July 4, the One Big Beautiful Bill Act is forecast to add about US$3.4 trillion (A$5.22tn) to the US national deficit over the coming decade, according to estimates by the Congressional Budget Office.
However, the Trump administration has dismissed estimates like these on the basis they do not factor in economic growth under the bill, and President Trump has accused Mr Musk of criticising the bill because it will end federal subsidies for Tesla.
But Mr Musk has long encouraged the Trump administration to axe US government tax credits for electric vehicles, and after President Trump threatened to cancel government contracts awarded to Mr Musk's companies, he said on X that SpaceX would "begin decommissioning its [the US government's] Dragon spacecraft immediately", putting several US space programs at risk.
SpaceX is one of the US government's largest defence contractors and, apart from Tesla, Mr Musk also heads up The Boring Company, Starlink, Neuralink and xAI.
MORE: Everything Tesla
Content originally sourced from: CarExpert.com.au
Tesla's stock price plunged by around seven per cent on Monday, the first day of trading after company CEO Elon Musk announced he would form the 'America Party' over the weekend.
The move drives another wedge between Mr Musk and US President Donald Trump, who criticised the Tesla chief's plan to challenge the country's existing two-party political system on his own social media platform.
"The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds!" said President Trump in a Truth Social post on Sunday (July 6).
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.
"I think it's ridiculous to start a third party. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it's always been a two-party system, and I think starting a third party just adds to confusion," he told reporters the same day.
A day earlier on Saturday (July 5), Mr Musk said a poll he conducted on his own social media platform, X, showed resoundingly that Americans want a third political party.
"By a factor of 2 to 1, you want a new political party and you shall have it," he posted on X.
"When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom."
By noon on Monday, however, Tesla stock had fallen by 7.6 per cent or about $21 per share, seemingly due to fears from investors that politics would damage the Tesla brand, wiping about US$15 billion (A$23.05bn) from the market value of the US electric car maker, although Mr Musk remains the world's richest person.
At the close of NASDAQ stock exchange trading yesterday, Tesla shares were down by US$21.41 or 6.79 per cent, to US$293.94, and are now down by about 14 per cent since early June, when Mr Musk first publicly criticised President Trump and the Republican-backed One Big Beautiful Bill.
Tesla stocks are down 31 per cent since Mr Trump's inauguration in January, and the company last week reported almost 14 per cent fewer deliveries in the second quarter of this year.
In its worst sales performance since 2022, Tesla has now posted two consecutive quarterly declines in vehicle deliveries in 2025, amid controversy and protests about Mr Musk's previous involvement with the Trump administration and the Department of Government Efficiency (DOGE).
After donating at least US$277 million (A$425.04m) to the Trump camp during the 2024 US election campaign and then heading up DOGE, the CEO of both Tesla and SpaceX began a very public feud with President Trump when he said the administration's new funding bill would plunge Americans into debut for generations to come.
Signed into law on July 4, the One Big Beautiful Bill Act is forecast to add about US$3.4 trillion (A$5.22tn) to the US national deficit over the coming decade, according to estimates by the Congressional Budget Office.
However, the Trump administration has dismissed estimates like these on the basis they do not factor in economic growth under the bill, and President Trump has accused Mr Musk of criticising the bill because it will end federal subsidies for Tesla.
But Mr Musk has long encouraged the Trump administration to axe US government tax credits for electric vehicles, and after President Trump threatened to cancel government contracts awarded to Mr Musk's companies, he said on X that SpaceX would "begin decommissioning its [the US government's] Dragon spacecraft immediately", putting several US space programs at risk.
SpaceX is one of the US government's largest defence contractors and, apart from Tesla, Mr Musk also heads up The Boring Company, Starlink, Neuralink and xAI.
MORE: Everything Tesla
Content originally sourced from: CarExpert.com.au
Tesla's stock price plunged by around seven per cent on Monday, the first day of trading after company CEO Elon Musk announced he would form the 'America Party' over the weekend.
The move drives another wedge between Mr Musk and US President Donald Trump, who criticised the Tesla chief's plan to challenge the country's existing two-party political system on his own social media platform.
"The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds!" said President Trump in a Truth Social post on Sunday (July 6).
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.
"I think it's ridiculous to start a third party. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it's always been a two-party system, and I think starting a third party just adds to confusion," he told reporters the same day.
A day earlier on Saturday (July 5), Mr Musk said a poll he conducted on his own social media platform, X, showed resoundingly that Americans want a third political party.
"By a factor of 2 to 1, you want a new political party and you shall have it," he posted on X.
"When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom."
By noon on Monday, however, Tesla stock had fallen by 7.6 per cent or about $21 per share, seemingly due to fears from investors that politics would damage the Tesla brand, wiping about US$15 billion (A$23.05bn) from the market value of the US electric car maker, although Mr Musk remains the world's richest person.
At the close of NASDAQ stock exchange trading yesterday, Tesla shares were down by US$21.41 or 6.79 per cent, to US$293.94, and are now down by about 14 per cent since early June, when Mr Musk first publicly criticised President Trump and the Republican-backed One Big Beautiful Bill.
Tesla stocks are down 31 per cent since Mr Trump's inauguration in January, and the company last week reported almost 14 per cent fewer deliveries in the second quarter of this year.
In its worst sales performance since 2022, Tesla has now posted two consecutive quarterly declines in vehicle deliveries in 2025, amid controversy and protests about Mr Musk's previous involvement with the Trump administration and the Department of Government Efficiency (DOGE).
After donating at least US$277 million (A$425.04m) to the Trump camp during the 2024 US election campaign and then heading up DOGE, the CEO of both Tesla and SpaceX began a very public feud with President Trump when he said the administration's new funding bill would plunge Americans into debut for generations to come.
Signed into law on July 4, the One Big Beautiful Bill Act is forecast to add about US$3.4 trillion (A$5.22tn) to the US national deficit over the coming decade, according to estimates by the Congressional Budget Office.
However, the Trump administration has dismissed estimates like these on the basis they do not factor in economic growth under the bill, and President Trump has accused Mr Musk of criticising the bill because it will end federal subsidies for Tesla.
But Mr Musk has long encouraged the Trump administration to axe US government tax credits for electric vehicles, and after President Trump threatened to cancel government contracts awarded to Mr Musk's companies, he said on X that SpaceX would "begin decommissioning its [the US government's] Dragon spacecraft immediately", putting several US space programs at risk.
SpaceX is one of the US government's largest defence contractors and, apart from Tesla, Mr Musk also heads up The Boring Company, Starlink, Neuralink and xAI.
MORE: Everything Tesla
Content originally sourced from: CarExpert.com.au
Tesla's stock price plunged by around seven per cent on Monday, the first day of trading after company CEO Elon Musk announced he would form the 'America Party' over the weekend.
The move drives another wedge between Mr Musk and US President Donald Trump, who criticised the Tesla chief's plan to challenge the country's existing two-party political system on his own social media platform.
"The one thing Third Parties are good for is the creation of Complete and Total DISRUPTION & CHAOS, and we have enough of that with the Radical Left Democrats, who have lost their confidence and their minds!" said President Trump in a Truth Social post on Sunday (July 6).
Hundreds of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.
"I think it's ridiculous to start a third party. We have a tremendous success with the Republican Party. The Democrats have lost their way, but it's always been a two-party system, and I think starting a third party just adds to confusion," he told reporters the same day.
A day earlier on Saturday (July 5), Mr Musk said a poll he conducted on his own social media platform, X, showed resoundingly that Americans want a third political party.
"By a factor of 2 to 1, you want a new political party and you shall have it," he posted on X.
"When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom."
By noon on Monday, however, Tesla stock had fallen by 7.6 per cent or about $21 per share, seemingly due to fears from investors that politics would damage the Tesla brand, wiping about US$15 billion (A$23.05bn) from the market value of the US electric car maker, although Mr Musk remains the world's richest person.
At the close of NASDAQ stock exchange trading yesterday, Tesla shares were down by US$21.41 or 6.79 per cent, to US$293.94, and are now down by about 14 per cent since early June, when Mr Musk first publicly criticised President Trump and the Republican-backed One Big Beautiful Bill.
Tesla stocks are down 31 per cent since Mr Trump's inauguration in January, and the company last week reported almost 14 per cent fewer deliveries in the second quarter of this year.
In its worst sales performance since 2022, Tesla has now posted two consecutive quarterly declines in vehicle deliveries in 2025, amid controversy and protests about Mr Musk's previous involvement with the Trump administration and the Department of Government Efficiency (DOGE).
After donating at least US$277 million (A$425.04m) to the Trump camp during the 2024 US election campaign and then heading up DOGE, the CEO of both Tesla and SpaceX began a very public feud with President Trump when he said the administration's new funding bill would plunge Americans into debut for generations to come.
Signed into law on July 4, the One Big Beautiful Bill Act is forecast to add about US$3.4 trillion (A$5.22tn) to the US national deficit over the coming decade, according to estimates by the Congressional Budget Office.
However, the Trump administration has dismissed estimates like these on the basis they do not factor in economic growth under the bill, and President Trump has accused Mr Musk of criticising the bill because it will end federal subsidies for Tesla.
But Mr Musk has long encouraged the Trump administration to axe US government tax credits for electric vehicles, and after President Trump threatened to cancel government contracts awarded to Mr Musk's companies, he said on X that SpaceX would "begin decommissioning its [the US government's] Dragon spacecraft immediately", putting several US space programs at risk.
SpaceX is one of the US government's largest defence contractors and, apart from Tesla, Mr Musk also heads up The Boring Company, Starlink, Neuralink and xAI.
MORE: Everything Tesla
Content originally sourced from: CarExpert.com.au
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Age
39 minutes ago
- The Age
ASX to slide on opening; Wall Street mixed
The Australian sharemarket is set to slide on opening following the Reserve Bank's surprise decision to hold interest rates steady, a move that caught many traders and economists who had anticipated a cut in rates off guard. Futures are pointing to a slight 14 point fall in the S&P/ASX 200 of 0.16 per cent on opening and the Australian dollar, propelled higher against the US dollar immediately after the Reserve's decision, was up 0.52 per cent to US65.25¢ at 5.45am AEDT. Stock indexes in the US were mixed in afternoon trading Tuesday, coming off a broad sell-off following the Trump administration's decision to impose new import tariffs set to go into effect next month on more than a dozen nations. The S&P 500 was up 0.1 per cent a day after posting its biggest drop since June. The benchmark index remains near its all-time high set last week. The Dow Jones Industrial Average was down 116 points, or 0.3 per cent, and the Nasdaq composite was 0.2 per cent higher. On Monday, President Donald Trump set a 25 per cent tax on goods imported from Japan and South Korea and new tariff rates on a dozen other nations scheduled to go into effect on August 1. Loading Trump provided notice by posting letters on Truth Social that were addressed to the leaders of the various countries. The letters warned them to not retaliate by increasing their own import taxes, or else the Trump administration would further increase tariffs. Just before hefty US tariffs on goods imported from nearly every country around the globe were to take effect in April, Trump postponed the levies for 90 days in hopes that foreign governments would be more willing to strike new trade deals. That 90-day negotiating period was set to expire before Wednesday. With the tariffs set to kick in now on August 1, the latest move by the White House amounts to essentially a four-week extension of its previous 90-day pause, wrote Tobin Marcus, an analyst at Wolfe Research.
Sydney Morning Herald
39 minutes ago
- Sydney Morning Herald
ASX to slide on opening; Wall Street mixed
The Australian sharemarket is set to slide on opening following the Reserve Bank's surprise decision to hold interest rates steady, a move that caught many traders and economists who had anticipated a cut in rates off guard. Futures are pointing to a slight 14 point fall in the S&P/ASX 200 of 0.16 per cent on opening and the Australian dollar, propelled higher against the US dollar immediately after the Reserve's decision, was up 0.52 per cent to US65.25¢ at 5.45am AEDT. Stock indexes in the US were mixed in afternoon trading Tuesday, coming off a broad sell-off following the Trump administration's decision to impose new import tariffs set to go into effect next month on more than a dozen nations. The S&P 500 was up 0.1 per cent a day after posting its biggest drop since June. The benchmark index remains near its all-time high set last week. The Dow Jones Industrial Average was down 116 points, or 0.3 per cent, and the Nasdaq composite was 0.2 per cent higher. On Monday, President Donald Trump set a 25 per cent tax on goods imported from Japan and South Korea and new tariff rates on a dozen other nations scheduled to go into effect on August 1. Loading Trump provided notice by posting letters on Truth Social that were addressed to the leaders of the various countries. The letters warned them to not retaliate by increasing their own import taxes, or else the Trump administration would further increase tariffs. Just before hefty US tariffs on goods imported from nearly every country around the globe were to take effect in April, Trump postponed the levies for 90 days in hopes that foreign governments would be more willing to strike new trade deals. That 90-day negotiating period was set to expire before Wednesday. With the tariffs set to kick in now on August 1, the latest move by the White House amounts to essentially a four-week extension of its previous 90-day pause, wrote Tobin Marcus, an analyst at Wolfe Research.
Perth Now
an hour ago
- Perth Now
Trump gives Ukraine more arms, floats Russia sanctions
President Donald Trump says he has approved sending US defensive weapons to Ukraine and is considering additional sanctions on Moscow, underscoring his frustration with Russian President Vladimir Putin over the growing death toll in Russia's war with Ukraine. Trump, who pledged as a presidential candidate to end the war within a day, has not been able to follow through on that promise and efforts by his administration to broker peace have come up short. Trump directed his ire at Putin on Tuesday during a meeting with cabinet officials at the White House. "I'm not happy with Putin. I can tell you that much right now," Trump said, noting that Russian and Ukrainian soldiers were dying in the thousands. "This is killing a lot of people. "We get a lot of bullshit thrown at us by Putin. ... He's very nice all the time, but it turns out to be meaningless." Trump said he was considering whether to support a bill in the Senate that would impose steep sanctions on Russia over the war. "I'm looking at it very strongly," he said. The bill, whose lead sponsors are Republican Senator Lindsey Graham of South Carolina and Democratic Senator Richard Blumenthal of Connecticut, would also punish other countries that trade with Moscow, imposing 500 per cent tariffs on nations that buy Russian oil, gas, uranium and other exports. Trump said on Monday that the United States would send more weapons to Ukraine, primarily defensive ones, to help it defend itself against Russian advances. On Tuesday he said he had approved such a move. "We're sending some defensive weapons to Ukraine, and I've approved that," he said. A decision by the Pentagon to halt some shipments of critical weapons to Ukraine prompted warnings by Kyiv last week that the move would weaken its ability to defend against Russia's intensifying air strikes and battlefield advances. Trump, who was seated next to Defense Secretary Pete Hegseth, was asked on Tuesday who had ordered that pause. "I don't know. Why don't you tell me?" Trump responded. with AP
