\n<\/p>\n
Shares in Tesla are heading for a sharp fall in the US as investors fear Elon Musk\u2019s launch of a new political party will present further problems for the electric carmaker.<\/p>\n
Tesla stock was down more than 7% in pre-market trading on Monday, threatening to wipe approximately $70bn (\u00a351bn) off the company\u2019s value when Wall Street opens.<\/p>\n
If the shares fell by that much, the value of Musk\u2019s stock would fall by more than $9bn to about $120bn. The Tesla and Space X boss remains comfortably the world\u2019s richest person, with a wealth of about $400bn, according to Forbes.<\/p>\n
Tesla is valued at just under $1tn but its shares have come under pressure owing to the Tesla CEO\u2019s relationship with Donald Trump.<\/p>\n
First, Musk\u2019s strong support for the US president created a consumer backlash and now the antagonistic turn in his relationship with Trump has investors worried Musk will be distracted from his day job, or that the White House will punish his businesses.<\/p>\n
Dan Ives, analyst at Wedbush Securities, said Musk\u2019s announcement that he is bankrolling a US political party will alarm investors.<\/p>\n
\u201cVery simply, Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors\/shareholders want him to take during this crucial period for the Tesla story,\u201d Ives said, adding that there was a \u201cbroader sense of exhaustion\u201d among Tesla investors that Musk \u2013 the company\u2019s largest shareholder \u2013 will not stay out of politics.<\/p>\n
Trump on Sunday called Musk\u2019s plans to form the America party \u201cridiculous\u201d, launching new barbs at the world\u2019s richest person.<\/p>\n
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Sign up to Business Today<\/span><\/p>\n Get set for the working day \u2013 we’ll point you to all the business news and analysis you need every morning<\/p>\n Privacy Notice: <\/strong>Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.<\/span><\/p>\n after newsletter promotion<\/p>\n In a post on the Truth Social tech platform, Trump wrote: \u201cI am saddened to watch Elon Musk go completely \u2018off the rails,\u2019 essentially becoming a TRAIN WRECK over the past five weeks.\u201d<\/p>\n Musk announced the creation of the America party on his X platform at the weekend. He wrote: \u201cWhen it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America party is formed to give you back your freedom.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Shares in Tesla are heading for a sharp fall in the US as investors fear Elon Musk\u2019s launch of a new political party will present further problems for the electric carmaker. Tesla stock was down more than 7% in pre-market trading on Monday, threatening to wipe approximately $70bn (\u00a351bn) off the company\u2019s value when Wall<\/p>\n","protected":false},"author":1,"featured_media":10225,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[52],"tags":[243,2301,3105,91,1518,3106,1371,2651,1913,2228,1381],"class_list":{"0":"post-10224","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-technology","8":"tag-brand","9":"tag-damage","10":"tag-dive","11":"tag-elon","12":"tag-fear","13":"tag-investors","14":"tag-musk","15":"tag-party","16":"tag-political","17":"tag-shares","18":"tag-tesla"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/10224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10224"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/10224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/10225"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}