Tesla shares fell nearly 8% on Monday after the company’s CEO, Elon Musk, announced plans to launch a new political party, named the ‘America Party’, that seared concerns about his commitment to the company’s future as it struggles with declining sales.
Musk’s net worth tumbled $14 billion Monday to $391 billion, which is still the largest fortune in the world by a more than $100 billion margin, according to Forbes’ latest estimates.
It was reported that Musk had donated about $288 million to help Donald Trump win last year, which added to the declining trend in his stocks.
Musk Plans To Launch His Party ‘America Party’
On May 30, when Musk left his role in the Trump administration over dissatisfaction with the president on his spending plan, otherwise known as the “Big, Beautiful Bill”, investors celebrated his stepping back from the Trump administration, but his announcement to launch his party left them worried, sources said.
Musk, the former head of the Department of Government Efficiency (DOGE), came out with his party on Saturday, July 5, 2025, raising his displeasure over President Donald Trump’s ‘One Big, Beautiful Bill’.
Decision to Unveil New Party Leads To Musk Shares Fall
J.P. Morgan analysts predicted Monday that this will be Tesla’s worst year for deliveries since 2022 because Musk translated into declining sales for Tesla vehicles in each of 2025’s first two quarters.
Responding to Musk’s decision to unveil his party, Trump on Sunday called Musk’s plans to form the “America Party” “ridiculous”.
Forbes estimated that Musk lost nearly as much in his net worth on Monday as the $15 billion total market value of Rivian, Tesla’s top American EV competitor.
What is Big Beautiful Bill?
The bill, which will fund Trump’s immigration crackdown, make his 2017 tax cuts permanent, and is expected to knock millions of Americans off health insurance, was passed with a 218-214 vote after an emotional debate on the House floor.
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