Elon Musk Loses $14 Billion in One Day After Tesla Stock Falls 7%
The 7% drop in Tesla's stock caused billionaire Elon Musk, the richest man in the world, to lose approximately $14 billion of his wealth in just one trading session on Monday, amid investors' concerns about his increasing involvement in politics.
This decline comes after Musk announced the establishment of a new political entity called "America Party" and escalated a public feud with U.S. President Donald Trump. Forbes magazine noted that these developments diverted investors' attention from Tesla's operational performance, negatively impacting the stock value.
In a related context, analyst Jed Dorsheimer from William Blair downgraded Tesla's stock rating from "Buy" to "Hold," pointing out in a client note a "less favorable federal regulatory environment for environmental credits" due to new legislation enacted by the U.S. administration.
The timing of Musk's political initiative launch is considered sensitive, especially amidst the fluctuations in the electric vehicle sector and increased government scrutiny of regulatory policies.
