The start of this week that is ending was not good at all for Tesla since it opened with a fall of 7.6% just after Elon Musk's announcement. Although it recovered some of the ground lost during the session, the decline reflected the markets' nervousness in the face of the political news.

Neil Wilson, a strategist at Saxo Markets, attributes this reaction not only to fears of incentive cuts, but also to the fact that "Musk seems distracted."

According to Saxo, many investors value his profile as a business leader free from political interference. His return to the public arena has reopened doubts about his ability to focus Tesla on its core mission.

Strong message from Trump

Trump does not look favorably on Musk’s desire to compete outside the established two-party system. His argument is clear: “independent parties have never been successful” and only generate “DISRUPTION and CHAOS.”

Pulses between politics and business

The disagreement dates back to the beginning of June, when Musk criticized Trump’s so-called “Big and Beautiful Bill,” suggesting that it would increase federal deficits. Musk, on X, stated: “When it comes to ruining our country with waste and corruption, we live in a one-party system, not a democracy.” He added: “Today, the America Party is being formed to give you back your freedom.”

This exchange of reproaches increased the political conflict, which, according to analysts, could lead Trump to promote measures against EVs. And the immediate reaction was a stock market crash.

Sales in decline

The stock market crash coincides with poor operating figures. Tesla reported a 13.5% drop in second-quarter sales compared to 2024. That was its worst quarterly drop since going public. In 2024, it even recorded its first annual sales decline (1%).

With BYD poised to displace it as the global leader in EVs without even operating in the US Tesla is not only facing internal challenges but also losing global ground to Chinese competitors.

Musk briefly held a role at the Department of Government Efficiency, pushing for federal layoffs. But he resigned in May, raising expectations that he would focus exclusively on Tesla and SpaceX.

His return to the political scene with the announcement of the America Party created a direct shock: investors fear that he will distance himself from Tesla again.

After years of sustained growth, Tesla has lost more than a third of its value since its peak in December. Experts agree that an active political strategy adds financial uncertainty.

Although the regulatory environment plays a role, clarity about its involvement in the company will be key to future stock market movements.

Tesla is currently navigating a highly volatile environment. Between political tensions with Trump, structural declines in sales, possible cuts to EV subsidies, and a confusing public narrative, the future requires clarity.

The challenge for Musk will be to demonstrate that his business vision prevails over his political ambitions. Not only Tesla's stability but also its position in an increasingly competitive global industry will depend on it.