Tesla shares decline after Musk's announcement about the creation of a new political party

Tesla's stock prices dropped by 7% during preliminary trading on Monday. The reason was Elon Musk's statement about the creation of a new political force called the «Party of America.» The value of the securities dropped to $295.47.

The announcement came after US President Donald Trump signed a large-scale bill on government spending and taxes. The document, according to critics, will lead to a significant increase in public debt. Musk, who previously headed the Department of Government Efficiency (DOGE), sharply criticized the initiative, noting that it negates attempts to control budget spending.

One of the key points of the bill is the abolition of the federal subsidy of $7.5 thousand for electric vehicle buyers. The benefit will expire after September 30, which may temporarily boost Tesla's sales in the third quarter, but will subsequently lead to a decrease.

In response to Musk's political activism, Trump wrote on Truth Social that the billionaire had «completely gone off the rails,» adding that third parties in the United States traditionally do not succeed and do not fit into the existing political system.