Tesla shares fell more than 3% on Monday under pressure from investor concerns about the focus of company CEO Elon Musk after he announced the creation of a new political party in the United States, marking a new escalation of his feud with President Donald Trump, UNN reports with reference to Reuters.
Details
Tesla shares fell more than 3% in Frankfurt, indicating another drop after the start of pre-market trading following a three-day Independence Day weekend.
Veteran tech analyst Dan Ives of Wedbush said Musk is Tesla's "greatest asset," and his decision to delve deeper into politics is likely to put pressure on the company's stock.
Tesla needs Musk as CEO and its greatest asset, not to go down the political path again... while also playing into Trump's hands. We also wouldn't be surprised if Tesla's board of directors intervenes at some point, given the political nature of these efforts, depending on how far Musk goes
On Sunday, Trump called Musk's plans to create an "America Party" "ridiculous," making new remarks about the tech billionaire and stating that a Musk ally he once appointed to head NASA would create a conflict of interest given Musk's business interests in space.
Addition
Elon Musk announced the creation of a new political party, the "America Party," after polling his followers. The party's goal is to "restore freedom" to the United States, opposing the two-party system.