Elon Musk has shared plans to launch a new political party called the “America Party,” raising new concerns among Tesla investors, as this is coming at a time when the company is dealing with fewer car deliveries and tough market competition, especially from China.
Musk announced the idea on social media over the weekend. He said the new party would aim to win a small number of Senate and House seats—just enough to influence key votes in Congress.
He believes this could help shape laws in a way that better reflects what he sees as the public’s true interests.
The announcement comes during a difficult stretch for Tesla. The electric carmaker is working through falling sales numbers and pressure from global rivals.
Some financial experts are warning that Musk’s renewed focus on politics could hurt the company’s progress.
They say now is a critical time for Tesla and that Musk’s attention should be on fixing business problems, not getting deeper into government matters.
Some Tesla investors are frustrated by this, as while many longtime supporters of Musk still back him, others feel worn down by his continued interest in politics.
There is concern that his political actions could hurt Tesla’s image, especially among customers who care about political climate among other things.
Earlier this year, Musk joined a group called the Department of Government Efficiency, which was tied to former President Donald Trump.
That move also caused concern among investors and customers. Musk later left the group in May, which helped calm Tesla’s stock for a short time. But his new political push has brought fresh doubts.
Musk and Trump have since ended their alliance. However, as Tesla works to recover its business strength, Musk’s political plans may add new risks for the company and its shareholders.