Elon Musk loses $14 billion in net worth after launching new political party

In the United States, tensions have escalated between Elon Musk, CEO of Tesla, and former President Donald Trump as Musk announced the formation of a new political party named the 'America Party' on July 7, 2025. This announcement was in protest against the Republican spending bill, which Musk publicly criticized, stating it would harm job markets and critical industries. The political fallout from Musk's actions has significantly impacted Tesla's stock value, leading to a dramatic 8% decline in shares following the announcement. Investors' concerns about Musk's increasing political involvement have deepened, as analysts signal that his distractions could hinder Tesla’s performance amid a challenging market landscape. Musk's political activities have drawn ire, not only from Trump but also from investors who feel that his focus on politics deviates from corporate priorities that might benefit Tesla. Analysts likeDan Ives from Wedbush Securities have expressed concerns that Musk's ongoing feud with Trump could create obstacles for Tesla in light of its dependence on government subsidies and favorable regulations. Following Musk's announcement, reports suggest that Tesla's vehicle deliveries have suffered their worst performance since 2022, exacerbating the impact of the political discord on the company’s standing in the industry. Furthermore, amid increasing competition from Chinese electric vehicle manufacturers, Tesla's market position could be weakened further if investors lose confidence in the company's leadership and strategic direction. The growing popularity of alternative electric vehicles has contributed to a cooling reception for Tesla's products, especially in regions where Musk’s political affiliations are poorly viewed. This, combined with internal challenges, has led to speculation about the long-term viability of the company's objectives in autonomous driving and robotics. In summary, the entanglement of Musk's business and political ambitions has not only diminished his personal fortune but has also stirred discontent among Tesla investors. The context of these developments underlines the precarious balance Musk must maintain between his political pursuits and the responsibilities he bears towards stakeholders within his companies, especially as elections approach, intensifying scrutiny on his actions and affiliations.