Tesla’s share price fell 7.5% at the start of trading on Monday.
New York: The world’s richest man Elon Musk’s announcement to form a new American political party has come at a cost.
Shares of his company Tesla have fallen sharply, wiping about $76 billion off the company’s value.
According to the British newspaper The Guardian, Tesla’s share price fell 7.5 percent at the start of trading on Monday, citing Elon Musk’s announcement of the formation of a new “America Party.”
The decline came amid investor concerns that Musk’s interest in politics could hinder Tesla’s focus and growth.
Donald Trump has criticized Elon Musk on social media, calling the formation of his political party “ridiculous.” Trump said, “Elon Musk has completely derailed and become a train wreck.”
Elon Musk wrote on his Platform X (formerly Twitter): “We live in a one-party system, not a democracy. The ‘America Party’ was created to give you back your freedom.”
Investors fear that Elon Musk’s focus will shift away from companies and towards politics, which could be detrimental to Tesla.
