Tesla shares fall nearly 7% in premarket after Elon Musk’s ‘American Party’ intent spooks Wall Street investors
Billionaire Elon Musk’s electric vehicle (EV) manufacturing company, Tesla Inc., shares dropped nearly 7% on the pre-market session after Musk’s intent to open a political party named the “American Party” spooked US market investors.
Tesla shares dropped nearly 7% to $291.96 at 4:01 a.m. (EDT) on the premarket Nasdaq on Monday, 7 July 2025, ahead of the Wall Street open. Shares are currently trading 6.23% lower at $294.59 as of 6:29 a.m. (EDT), compared to $315.35 at the previous market close on Friday, last week.
Musk’s political plans
After the US Congress passed President Donald Trump‘s One Big Beautiful Bill last week, Musk posted his intent to form the “American Party” to oppose the existing ‘Republican/Democrat Uniparty.’
“The America Party is needed to fight the Republican/Democrat Uniparty,” said Musk in a platform X post earlier today. This is not the first time he has openly posted about forming the party.
Over the weekend, Elon Musk actively posted on his intent to create the American Party, and even asked his followers’ opinion on the same.
“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 & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom,” said Musk in his post on Sunday.
Tesla Share Price Trend
Tesla shares closed flat with 0.10% losses at $315.35 after Friday’s US stock market session, compared to $315.65 in the previous market close. The shares dropped as soon as the premarket trading session opened for the US on Monday, 7 July 2025, according to Marketwatch data.
In the last five years, Tesla shares have given stock market investors more than 206% returns on their investments, and 24.67% in the last one-year period. However, on a year-to-date (YTD) basis, the stock is down 16.86% in 2025.
In the last one-month period, the shares have gained 2.19% but are trading 2.79% lower in the last five US stock market sessions. The shares hit their 52-week high level at $488.54, while the 52-week low levels were at $182, according to the stock market data.
The company’s market capitalisation (M-Cap) was at $1.01 trillion, according to the Marketwatch data as of premarket Monday, 7 July 2025.
Read all stories by Anubhav Mukherjee
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