Tesla shares sink as Musk launches political party (news.sky.com)

Overview 🚨📉

In July 2025, Elon Musk publicly announced the launch of a new political faction known as the “X Party”, sparking significant backlash from financial markets. Following the announcement, Tesla’s stock dropped sharply as investors reacted to concerns over Musk’s growing entanglement of politics with business.

The move raised alarms over potential regulatory scrutiny, brand damage, and the long-term consequences of a billionaire CEO directly entering the political arena. While Musk has long used his platforms to weigh in on cultural and political debates, the formation of an official party marks a formal escalation.

Market analysts and critics noted that the political party’s creation may further polarize Tesla’s customer base and invite government pushback, especially if the party pushes controversial policies or aligns with radical ideologies.

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