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The Independent UK
The Independent UK
National
Joel Jose

Tesla shares drop as ‘investors worry about two things’

  • Tesla shares dropped by nearly seven per cent in pre-market trading on Monday following CEO Elon Musk's announcement of plans to launch a new American political party.
  • The drop reflects renewed investor apprehension regarding Musk's focus on Tesla, especially as the electric vehicle manufacturer is already contending with declining sales.
  • Musk's political venture, the “America Party”, comes after a public disagreement with Donald Trump concerning a tax cut and spending bill, which escalated into a social media dispute.
  • Neil Wilson, UK investor strategist at Saxo Markets, highlighted two main concerns: “one is more Trump ire affecting subsidies and the other, more importantly, is a distracted Musk.”
  • Investors and analysts are expressing "a sense of exhaustion" over Musk's political immersion, prompting questions about the Tesla board's ability to manage his outside ventures.

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