Elon Musk's creation of America Party causes Tesla stock to plummet by 7.5%.

Over the weekend, Tesla CEO Elon Musk announced the creation of a new political party called the America Party, focusing on winning seats in Congress. President Trump expressed frustration with Musk’s move, which caused Tesla’s stock to plummet by 7.5%. Investors are concerned about Musk’s involvement in politics affecting Tesla’s brand and stock performance.

Musk’s formation of the America Party reignited his feud with Trump, who criticized the move as Musk going “off the rails.” Investors remember how Tesla’s stock surged after Trump’s election, but now fear the impact of Musk’s political involvement. Despite potential branding and business challenges, Musk and Trump have reconciled before, leaving room for speculation on Tesla’s future.

Tesla investors are wary of Musk’s political engagement impacting the company’s value. Musk’s previous involvement with DOGE raised concerns about Tesla’s brand. While relationships with Trump initially benefited Tesla, current developments may pose risks. The company’s high valuation, struggling core EV business, and Musk’s optimistic outlook are factors to consider when deciding on investment.

Missed opportunities in successful stocks can be discouraging, but with expert recommendations like the “Double Down” alerts for promising companies, investors can capitalize on potential growth. Historical returns from Nvidia, Apple, and Netflix show the significant returns possible with strategic investments. By joining Stock Advisor, investors can access alerts for companies with high growth potential and secure their financial future.

Read more at Nasdaq: Tesla Is Sinking Today — Should You Buy the Stock Now?