Tesla's Market Value Takes a Hit

In a surprising turn of events, Tesla Inc. experienced a significant drop in its share price, falling over 7% in premarket trading. This downturn came right after Elon Musk, the company's high-profile CEO, revealed his plans to launch a new political entity named the American Party.

Investor Sentiment Sours

The announcement was met with skepticism from investors, a reaction further fueled by criticism from former US President Donald Trump, who dismissed Musk's political venture as "ridiculous." This has led to growing concerns regarding Musk's dual role as a business leader and a political figure.

Market Reaction

By 4:04 am ET, Tesla's shares were down 7.42%, trading at $294.54, signaling a rocky start to the week for the electric vehicle giant.