Tesla shares fall in premarket session after Musk launches ‘America Party’

Tesla shares saw an almost 7 per cent drop in a premarket session on the Nasdaq on Monday (July 7) morning after Elon Musk’s announcement that he was launching an “America Party” seemed to spook investors.

The shares were trading at $294.59 in the premarket session compared to $315.35 at the previous market close on Friday (July 4).

‘America Party’

In the ongoing public tussle between US President Donald Trump and his one-time supporter Musk, the latter, in a post on X, announced his intention of launching the new political party.

He made the announcement after the US Congress passed Trump’s “One Big Beautiful Bill” last week, a law that Musk was opposed to.

“The America Party is needed to fight the Republican / Democrat Uniparty,” posted the Tesla CEO on X.

Also Read: Elon Musk launches 'America Party' to give 'freedom' back to Americans

Musk had in the past expressed his desire to form his own political party, and over the weekend, asked his followers on the social media platform X their opinion of his intent to create the America Party.

“By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste and graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom,” Elon Musk posted on X on Sunday (July 6).

Tesla shares' past performance

During the past five years, Tesla shares have given investors a return of more than 206 per cent on their investment, and almost 25 per cent in the last one-year period.

However, the stock is now down by almost 17 per cent on a year-to-date basis.

Also Read: What's Truth Social? Musk's sly rejoinder to Trump's 'off the rails' rant

The 52-week high for the share was $488.54, while the 52-week low was $182, according to the data from the stock market.