Tesla shares slid by roughly 6–7% in pre-market trading on Monday after CEO Elon Musk announced his new political venture, the “America Party” as investors fear Musk’s latest foray into politics might not bode well for the company.
The slump in share price was also caused by the recent passage of a U.S. tax bill that removes Musk’s EV incentives, including the $7,500 federal tax credit and lucrative zero-emission vehicle (ZEV) credits.
Internally, Tesla’s second-quarter delivery numbers are down 13.5% year-on-year, raising red flags about either cooling demand or hiccups in production, while its much-hyped robotaxi project is facing early setbacks, including a minor but publicized scrape during testing in Austin, Texas.
Some, however, continue to bet on the company’s long-term upside, particularly in AI and full self-driving technology. But with shares hovering around $295 and off by more than 20% this year, there’s a clear sense that investor patience is wearing thin. The Tesla growth story is beginning to show cracks, a very worrying sign for Musk.
