【By Observer Net, Shao Yun】
American billionaire and Tesla founder Musk's influence on his companies through his "America Party" continues to show. As of the morning of the 7th in Eastern Time, Tesla's stock price fell more than 7% before the market opened.
The Guardian pointed out that if this drop continues after the opening, it would mean Tesla losing about $70 billion in market value, and Musk's personal wealth would shrink by $9 billion, with the value of his Tesla shares dropping to around $120 billion. Although this will not affect Musk's position as the world's richest person, it shows that investor confidence in Tesla and Musk has declined.
Renowned Tesla bull analyst and global technology research director at Wedbush Securities in the United States, Dan Ives, said on the 6th that Musk's high-profile involvement in politics has already made investors "tired."
"Musk's deep involvement in politics during a critical period for Tesla's development, trying to challenge the Washington establishment, is contrary to the expectations of Tesla investors/stockholders," Ives said. "Although Musk's core supporters will always fully support him, many Tesla investors are generally tired of Musk's continuous involvement in politics."
According to Reuters on the 7th, Neil Wilson, an investor strategist at Saxo Bank in the UK, analyzed that investors have two concerns: "One is that Trump's anger may affect (Tesla's) government subsidies, and the second, and more important one, is that Musk's attention is being diverted."
CNBC, a U.S. consumer news and business channel, pointed out that in addition to the political turmoil, Tesla is currently facing increased competition, especially in its core market - China. Tesla reported last week that it delivered approximately 384,000 electric vehicles in the second quarter, a decrease of 13.5% compared to the same period in 2024, which did not meet market expectations.
On May 30, 2025, in Washington, USA, at the White House Oval Office, Trump (right) and Musk spoke at a press conference. Visual China
Since Musk publicly supported Trump and the Republican Party last July, Tesla's stock price has been affected by his personal political activities. After Trump's election in November, Tesla's stock price rose steadily, reaching a historical high of $488.54 in December, with a market value exceeding $1.5 trillion. However, as Musk became more involved in government affairs, Tesla's stock price wiped out all the gains since the election day in March this year.
Ives pointed out that when Musk announced in May that he left the "Department of Government Efficiency" (DOGE) of the Trump administration and focused on Tesla, investors felt relieved, but the situation quickly deteriorated. With the public conflict between Musk and Trump over the "Big and Beautiful" tax and spending bill, "the situation turned sharply downward." Wilson said that investors had originally welcomed Musk's withdrawal from the political frontline, but now they are worried he might be drawn back in.
Trump's ally, venture capitalist James Fishback, announced on the 5th that due to Musk's announcement of creating a new party, his investment company Azoria Partners would delay the launch of an ETF (Exchange-Traded Fund) linked to Tesla.
As a Tesla investor, Fishback also posted on social media a letter he wrote to Robyn Denholm, chairman of Tesla's board of directors. In the letter, he urged Tesla's board to "immediately hold a meeting" to ask Musk to "clarify his political ambitions and assess whether these ambitions align with his full-time duties as Tesla's CEO."
Fishback said he believes Musk has gone too far, but still hopes Musk will "refocus entirely" on Tesla. If Musk cannot do so, he believes Tesla's board "will take appropriate action."
The U.S. Business Insider website said on the 7th that Tesla shareholders have long expressed their belief that no one can replace Musk as the company's Chief Executive Officer (CEO). However, Ives believes that if Musk continues to push his political activities, "the possibility of the board intervening in the future cannot be ruled out."
Previously, Musk posted on X on the day the U.S. House of Representatives passed the "Big and Beautiful" bill, asking netizens whether they should establish an "America Party" to "liberate the American people from the two-party system." Out of the approximately 1.249 million netizens who voted, 65.4% supported it, while 34.6% opposed it. The next day, Musk announced that this data showed, "You want a new party," and he would establish the "America Party" to "give you freedom."
On the 6th, Trump published a long article on his self-created social platform Truth Social, stating that he saw Musk completely "derailed" over the past five weeks, basically falling into a "train accident-like" catastrophic situation, which was "sad." He said the only use of establishing a third party is to "create complete chaos and destruction," and told the media that Musk's idea was "absurd." In response, Musk quoted a famous line from the classic science fiction novel "Dune" in the United States, saying, "Fear is the killer of thought. Fear is the little death that brings total destruction."
According to U.S. law, a qualified political party needs to go through a complex certification process to participate in elections. First, it must hold a party conference or convention, elect temporary officials, and designate the party name. It is currently unclear whether Musk's "America Party" has started the relevant procedures.
Some voices believe that Musk's political ambitions are not a sudden decision. Musk has stated that the "America Party" may support a candidate in the 2028 presidential election. However, some doubt whether Musk can "persevere" in building a new party. "I think this is completely driven by his conflict with Trump, and he is now trying to sink Trump's (political) assets," said Mark McCorckle, professor at the Sanford School of Public Policy at Duke University.
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Original: https://www.toutiao.com/article/7524314716865511978/
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