In this article, we will discuss Where is Tesla Headed? Should You Buy Now?
Tesla shares dropped roughly 7% following CEO Elon Musk’s announcement of plans to launch a new political party, sparking renewed concern among investors.
The decline marked Tesla’s sharpest one-day loss since June 5, when the stock plummeted 14% amid a public clash between Musk and President Donald Trump. Over the weekend, Musk revealed that the new party, named the “America Party,” would strategically target a handful of congressional races — specifically 2 to 3 Senate seats and 8 to 10 House districts — aiming to become a pivotal force in close legislative decisions. He claimed the goal was to ensure that controversial laws align with the “true will of the people.”
Also Read: Top Canadian tech AI stocks
Musk’s deeper move into politics is raising red flags among investors, who have long viewed his political involvement as a potential liability for Tesla’s brand. Earlier this year, Musk played a key role in the Department of Government Efficiency (DOGE), a government reform initiative tied to Trump. His departure from DOGE in May had been seen as a positive shift for Tesla’s stock.
Now, his renewed political ambitions are shaking investor confidence again.
Also Read: AI Tech Stocks Canada
“This is the last thing Tesla investors want to see at such a critical juncture for the company,” said Dan Ives, Wedbush Securities’ head of technology research, in a note Sunday. “Musk turning his focus back toward Washington politics and challenging the establishment is a major distraction.”
Ives added that while Musk’s loyal fan base may applaud his every move, many long-term shareholders are growing increasingly weary of his political detours. Musk, once praised by Trump, is now facing backlash from the president — adding further tension to an already volatile situation.
Sign Up For our Newsletters to get latest updates
