Tesla shares dropped nearly 7% Monday, erasing over $68 billion in market value after CEO Elon Musk announced the formation of the “America Party," according to CNBC. Musk said the new party would aim to influence key Senate and House races enough to sway legislation “to serve the true will of the people.” Musk’s political involvement with the Department of Government Efficiency has raised concerns among investors about potential damage to Tesla’s brand. Wedbush analyst Dan Ives warned Musk’s political ambitions are “exactly the opposite direction” Tesla needs now. Tesla is facing challenges beyond politics, including a 14% year-over-year drop in second-quarter deliveries and growing competition in China.
