By Tesla’s stock dropped nearly 7% in premarket trading on July 7 after Elon Musk’s announcement of the “America Party.” Analyst Dan Ives from Wedbush warned that growing investor fatigue is setting in, as Musk appears to be shifting energy toward political pursuits at the expense of Tesla.
Tesla stock is down around 21–27% year-to-date, and the political shift amplifies keener investor concerns. Ives said, “There is a broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track”.
This comes on top of sluggish deliveries—down 13.5% YoY—and the looming loss of a $7,500 EV tax credit after September, which could further affect Tesla’s competitive edge