From ZeroHedge, July 7:
Tesla shares tumbled in premarket trading in New York as investors weighed Elon Musk's move to launch the new "America Party," just one day after President Trump signed a tax-cut and spending bill into law—legislation Musk had publicly denounced. Although Musk has denied founding the party, calling the reports "fake news," the market appears unconvinced.
Tesla's stock, already down 22% year-to-date as of Thursday's close, is poised to lose another 7% if premarket losses carry into the cash trading session.
Wall Street analysts are concerned that Musk is "diving deeper into politics," which could damage the brand, weaken demand, or further distract him from Tesla's core EV and robotics units.
Here's what some on Wall Street are saying, via Bloomberg:
Wedbush (Dan Ives)
"Very 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"
With the autonomous future ahead and the AI revolution in full force, Musk should avoid acts of provocation. Trump can create more hurdles for Musk as well as Tesla and SpaceX if the political battle intensifies heading into mid-term elections in 2026
"We remain firmly bullish on Tesla's AI future but clearly this is not the news we want to see as it adds another perceived overhang to the stock"
Maintains outperform on stock with a price target at $500
Global X ETFs (Billy Leung)
"This probably isn't what Tesla investors were hoping for. Musk just got back to focusing on the business and the stock was rallying. Now he's dragging it into another political headline cycle"
For the stock, the move raises noise and volatility in the short term while long term, the core thesis for Tesla is still about AI, robotics, and autonomy — the political distractions don't really dent that ....
....MUCH MORE
Although the stock is coming back from the worst of the pre-market decline it is still down $18.90 (-5.99%) and back below $300, $296.45 last.
July 1 - As Tesla Falls Back Under $300 Per Share, xAI Raises $10B in Debt And Equity
As we are fond of pointing out, the endpoints one chooses for a timeline changes the appearance of the presentation and oftentimes is a handy reveal of the writer's biases and intent. For example, yesterday, June 30, Tesla marked the fifteenth anniversary of it's $17.00 IPO. Accounting for the 3:1 and 5:1 stock splits $300 equates to $4500.00 on the original shares.
On the other hand there are people who begin their timeline at the stock's December 2024 all-time high print, $488.54.
And on the third hand are people whose reference period is one year, in which the stock is up 49%....
