Stock market information for Tesla Inc (TSLA)
- Tesla Inc is a equity in the USA market.
- The price is 293.94 USD currently with a change of -21.29 USD (-0.07%) from the previous close.
- The latest trade time is Tuesday, July 8, 09:07:49 +0100.
Let me talk this through with myself—trying to make sense of what’s happening with Tesla and Elon Musk’s plunge into politics.
What just happened?
So here’s the headline: Tesla’s stock dropped nearly 7% today—around a $21 fall, closing at $293.94—after Musk announced he’s forming a new political party called the “America Party”. That translates to over $68 billion wiped off Tesla’s market cap in a single day. Many investors are clearly shaken.
Why did the stock fall?
I can see several factors:
- Distraction fears
Investors are concerned that Musk is shifting focus away from Tesla’s core business—electric vehicles, self-driving tech, and upcoming robotaxi stratege. - Political fallout
His feud with Trump over the “Big Beautiful Bill” and this new party announcement triggered backlash. Trump himself called the idea “ridiculous” and warned Musk had gone “completely off the rails”. - Regulatory risk
There’s a real worry that with Musk entangled in politics, Tesla may lose EV incentives or face policy changes that reduce regulatory credit revenue—a segment contributing around $595 million in Q1. - Nervous analysts
Wedbush’s Dan Ives says investors are exhausted by Musk’s political detours, and William Blair downgraded Tesla from “buy” to “hold” due to rising distractions and regulatory threats.
How bad is it?
- Year-to-date, Tesla shares are down 31–35%, compared to a 4% gain in the S&P 500.
- The Q2 delivery figures were weak—down about 13–14% year-on-year .
- Investor sentiment is souring: polls show negative views of Musk at around 55% unfavorable, and activists have launched boycotts like “Tesla Takedown”.
What Musk wants with the America party
From Musk’s own words and reporting:
- The goal is to focus on 2–3 Senate seats and 8–10 House districts, aiming to serve as a deciding vote on major laws.
- Ideologically, it’s framed as fiscally conservative, pushing deficit reduction, AI modernization, deregulation, and pro-family policies.
- But it’s unclear how real this party is—Musk hasn’t filed official paperwork and even flagged some filings as fake.
What i´m thinking
If I were an investor, I’d be asking:
- Is Musk spreading himself too thin?
- Could politics hurt Tesla’s EV incentives or brand image?
- Are there better leaders who could run Tesla while Musk pursues political goals?
Some say Tesla might actually benefit if Musk handed more responsibility to others—reducing “founder risk”
What could happen next?
- More volatility: Analysts expect more swings, especially around key chart levels like $285, $265, and $225 support zones.
- Board pressure: Some shareholders want Tesla’s board to reassess Musk’s CEO role amid these political pursuits.
- Policy threats: If Trump-era bills get passed or rolled out, Tesla could lose billions in credits .
Final thought
I keep circling back: Does this help Tesla or hurt it? Today’s reaction—massive stock drop and investor fatigue—is telling. If Musk wants Tesla to thrive, he either needs to prove the America Party won’t distract him… or step back from political headlines and let the company breathe.
