Musk Launches 'Anti-Trump' Party... Tesla Loses ₩205 Trillion in One Day

Stock price plunges 6.8% after 'new party' announcement

Down 27% this year... Even Tesla bulls turn away

NYT: "Launching a new nationwide party is harder than exploring Mars"

Elon Musk, CEO of Tesla, who had consistently criticized U.S. President Donald Trump, declared the formation of a new political party, causing Tesla's stock price to drop by nearly 7%. There are growing calls for Tesla's board to intervene, amid concerns that Musk's political actions are damaging the company's value.

On the 7th (local time) at the New York Stock Exchange, Tesla's share price ended down 6.79% at $293.94. Tesla's market capitalization decreased by $150 billion (about ₩205 trillion) in just one day. Recently, Tesla's stock price has shown a sharp decline whenever tensions flared between Musk and President Trump. On the 5th of last month, when their relationship soured, Tesla's stock plummeted 14.26% in a single day, and on the 1st of this month, after Musk criticized Trump, it fell another 5.34%.

After the U.S. Congress finally passed President Trump's core legislative agenda, the 'One Big Beautiful Bill (OBBBA)', Musk conducted an online vote for forming a new party via social media on the 4th. On the 5th, he announced, "The America Party is being launched today to return freedom." President Trump strongly denounced it on the 6th during a press meeting, calling it "nonsense" and "completely off track."

Concerns are mounting on Wall Street that Musk's political actions could become a serious burden on Tesla's corporate value. Tesla's share price has dropped 27% year-to-date. Dan Ives, a Wedbush Securities analyst known as a Tesla bull, also wrote in a memo to investors, "Musk is crossing lines he shouldn’t," and pointed out, "It is now time for Tesla’s board to step in."

Tesla investors' concerns are spreading as well. Investment firm Azoria Partners announced it would postpone the launch of the 'Tesla Convexity ETF,' which had been scheduled this week. James Fishback, CEO of Azoria Partners, wrote on social media, "The (Tesla) board must meet with Musk to assess whether his political ambitions are compatible with his responsibilities as CEO."

The New York Times remarked that "It is very difficult and costly to launch a new party that can compete with the Democrats and Republicans," and "Nationwide party formation may be even harder than sending people to Mars." Citing sources, they also reported, "Musk has discussed forming a new party but so far it remains mostly conceptual, with no concrete plans for execution."

Reporter Da-yeon Lim allopen@hankyung.com