Web Desk:

Following the announcement of his new political party, Elon Musk is now facing not only political backlash but also a massive financial loss, with his company Tesla’s market value plunging by nearly \$76 billion.

According to The Guardian, Tesla shares dropped by 7.5% when the stock market opened on Monday — a reaction that came immediately after Musk announced the formation of the “America Party.”

Analysts say investors are concerned that Musk’s increasing political involvement may negatively affect his companies — particularly Tesla — and hinder future growth.

Musk’s political move has sparked a fierce response from U.S. President Donald Trump, who slammed the initiative as “ridiculous” in a social media post.
“Elon Musk has completely lost it. He’s a total disaster,” Trump wrote.

Responding via his platform X, Musk said:
“We are living under a one-party system, not a democracy. The ‘America Party’ is here to restore your freedom.”

The investor unrest reflects growing doubts about Musk’s shifting priorities — especially given that he is already overseeing several major ventures, including Tesla, SpaceX, Neuralink, and X.

Analysts warn that if Musk continues down this political path, investor confidence could weaken further, and Tesla’s market dominance might also suffer.

Political Tensions Reach Outer Space

The ongoing rift between Elon Musk and Donald Trump has now spilled into the space sector. In a shocking move, Musk recently threatened to withdraw SpaceX’s Dragon spacecraft from U.S. government contracts, sparking concern within NASA and among astronauts.

Once considered allies, Trump and Musk are now fierce political rivals — a fallout that began after Trump introduced a controversial economic bill that cut taxes on Social Security, overtime pay, and tipped wages.

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Musk denounced the bill as a “satanic law”, triggering a war of words. In response, Trump criticized Musk and hinted at reconsidering federal contracts awarded to his companies.

Musk fired back with a bombshell, announcing plans to decommission the Dragon spacecraft — a vital system currently used to transport astronauts to the International Space Station (ISS).

The statement sent shockwaves across the space exploration community.
Would NASA be forced to shut down the ISS earlier than scheduled?
Would the agency have to rely on Boeing’s still-unproven Starliner as an emergency backup?
These pressing questions surfaced amid the unfolding drama.

From Government Advisor to Political Opponent

It is worth noting that Musk was once appointed by Trump as the head of the Department of Government Efficiency, but just days later, he resigned following strong disagreements over Trump’s “Big Beautiful Bill.”

Since then, the relationship between the two has deteriorated rapidly, turning them into bitter political foes. Musk’s launch of a new political party is widely seen as a direct challenge to Trump, with the intention of giving him a tough time in upcoming elections.

Tensions have escalated to the point where President Trump has even hinted at the possibility of deporting Elon Musk from the United States.