TechFlow news, on July 8, according to Jinshi Data, after Musk claimed over the weekend that he would establish a third U.S. political party called the "American Party," Tesla's (TSLA.O) stock plunged nearly 7% on Monday, wiping out about $15 billion from the world's richest man's net worth in a single day. Investors are concerned his companies could lose federal subsidies due to conflicts with Trump, thereby facing further obstacles.
Musk's creation of the "American Party" is seen by some observers as an attempt to convert public discontent into political capital. It is reported that he has already reached out to Andrew Yang, an American politician of Chinese descent, regarding party formation. Yang is the founder of the Forward Party and a former presidential candidate.
While the "American Party" might still influence U.S. political dynamics, its immediate impact on investor sentiment is undoubtedly negative. Currently, the market message is clear: stakeholders prefer the world's richest man stay away from Capitol Hill and refocus his attention on factory floors.
According to Forbes estimates, as Tesla's market value declined, Musk's personal wealth now stands at $391 billion, down from $405 billion the previous day. Despite this drop, he still maintains a lead of over $100 billion compared to the second-richest individual.
Latest reports from multiple analytical institutions indicate widespread investor dissatisfaction with Musk's recent political moves. Dan Ives, Wedbush Securities analyst and long-time Tesla supporter, wrote in a report last Sunday: "Musk diving deeper into politics and attempting to challenge the Washington establishment is exactly what Tesla investors and shareholders least want him to do."
