Tesla’s Market Turmoil Deepens as Elon Musk Doubles Down on Political Ambitions

Tesla shares plunged for a second consecutive session as investors reacted to Elon Musk's announcement of forming a new political party. The electric vehicle maker's stock dragged the Nasdaq Composite down 0.9%, compounding broader market losses after former President TRUMP announced new tariffs set to take effect August 1.

Musk revealed plans to influence congressional elections, aiming to control "2 or 3 Senate seats and 8 to 10 House districts" to wield decisive legislative power. Market participants showed immediate skepticism, with Tesla's valuation taking a significant hit at Monday's opening bell.

The political gambit coincides with a 400-point drop in the Dow Jones Industrial Average and 0.8% decline in the S&P 500. Trump's tariff measures target 14 nations across Southeast Asia, Africa, and Eastern Europe, covering a wide range of imports with promises of additional trade restrictions to come.