Tesla investors feel 'exhausted' as Musk dives back into politics
What's the story
Dan Ives, a leading Tesla analyst and one of its biggest supporters, has said that many investors are feeling "exhausted" by Elon Musk's growing political involvement. In a note published on Sunday, Ives said Musk's recent foray into politics is "exactly the opposite direction" that Tesla investors/shareholders want him to take during this crucial period for the company.
Investor apprehensions
Musk's plan to form new political party
Ives's comments came after Musk announced his plan to form a new political party amid his ongoing feud with President Donald Trump over the "Big Beautiful Bill." In a post on X last Saturday, Musk said, "Today, the America Party is formed to give you back your freedom." This move has raised concerns among Tesla investors who fear it could distract from the company's core mission of producing electric vehicles (EVs).
Market impact
Tesla's shares under pressure
Ives has predicted that Tesla's shares will be "under some pressure" on Monday as investors worry about Trump's potential reaction to Musk's political ambitions. He warned that Trump could view Musk as more of a competitor than a friend, which could create hurdles for Tesla and SpaceX in the future. Notably, Tesla's stock is down 22% so far this year amid these developments.
Presidential reaction
Trump mocks Musk
Responding to Musk's announcement, President Trump said on his Truth Social platform that Musk had gone "completely off the rails." He mocked Musk for wanting to start a third political party in the US, which have never succeeded. Trump also suggested that Musk was upset because the spending bill removed incentives for purchasing electric cars.
Business impact
Tesla's performance affected by Musk's political involvement
Musk's political involvement over the past year has affected Tesla's performance. In H1 2025, the EV maker faced protests, boycotts, and attacks over Musk's work with DOGE. The ongoing feud between Musk and President Trump has also affected the company's stock. Last week, Tesla reported delivering some 384,000 EVs in Q2 2025—a 13.5% decline compared to Q2 2024.