Elon Musk’s pledge to work round the clock for shareholders lasted
just six weeks before the siren call of politics lured him away from his corporate empire.
One day after President Trump signed into law the tax cut and spending bill that had provoked a split of the former power couple, the Tesla CEO said he was forming a third party to end the Republican and Democrat duopoly in Washington.
It marks the return to political activism that many Tesla investors had hoped was firmly behind them following the entrepreneur’s tumultuous spell in the White House.
“Very simply, Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story,” warned Wedbush Securities tech analyst Dan Ives. “There is a broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track.”
Shares in Tesla have had a roller-coaster year in 2025, plunging on the back of his controversial government cuts before soaring once more when it became clear he would leave the Trump administration.
On Monday, the stock sunk nearly 7% amid fears the U.S. president could view Musk “more as a foe than a friend now,” as Ives phrased it.
The analyst added that it would not “shock” him if the board gets involved at some point to exert pressure on their CEO.
Tesla did not respond to a request for comment by
Fortune.
—Christiaan Hetzner