Tesla Stock Drops as CEO Musk Launches Political Party
Tesla's stock price plummeted as CEO Elon Musk announced the launch of a new political party, leading to investor concerns and market value losses.
Tesla Shares Hit Hard After Musk's Political Announcement
Tesla shares took a nosedive on Monday as CEO Elon Musk unveiled plans to launch a political party, causing the stock price to drop by 6.8% and closing at $293.94 on Nasdaq. The announcement heightened investor worries amid declining sales and Musk's political pursuits.
Impact on Market Cap and Investor Concerns
The steep decline marked one of Tesla's worst single-day performances this year, with Musk's new political venture raising questions about the company's direction. The $68 billion market cap hit resulted in Tesla losing over $68 billion in market value in a single day.
Financial Losses and Musk's Net Worth
Musk's net worth took a hit as well, with the billionaire losing $15.3 billion in a single day, pushing his year-to-date wealth drop to $86.7 billion. Trump threatened to cut subsidies to Musk's companies after their feud erupted into a social media brawl, wiping off $150 billion in Tesla's market value in a day.