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Tesla (NASDAQ:TSLA) investors may have another drama-filled week after Elon Musk’s dissatisfaction with the Republican’s tax and spending bill led him to form a new political party.
Wedbush Securities analyst Dan Ives said Tesla (NASDAQ:TSLA) CEO Elon Musk starting his own political party is not the news that investors would like to hear. While Musk said the new political party will focus on just 2 or 3 Senate seats and 8 to 10 house districts, Ives said poking President Trump and the Republican Party is the opposite direction he should be going in terms of protecting the interests of Tesla (TSLA).
“Since feuding with Trump, Musk is now taking this political game to a whole new level which will take precious time away from Tesla, SpaceX, etc and towards politics in our view,” highlighted Ives. “Given the limited success independents have seen politically in the US historically, this will be viewed as a disruptive (for Tesla) and political gamble by Musk heading into competitive congressional races in 2026 and create some agita for investors,” he added.
Looking ahead, Ives and his team would not be shocked if the Tesla (TSLA) board gets involved if Elon Musk continues his political intervening.
Shares of Tesla (TSLA) fell 6.7% in premarket action to $294.16 vs. the 52-week range of $182.00 to $488.54. The Austin-based company is due to report earnings on July 23.