Tesla’s CEO Elon Musk announced to formation of a political force called the America Party to save the US from bankruptcy. The agenda is “to give you your freedom back” and stop printing money to reduce the $36 trillion National debt. Even US President Donald Trump called the idea “ridiculous” and launched new barbs at the billionaire. However, investors are not in line with Musk’s political ambitions and it reflected on the Tesla shares charts on Friday.
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Frankfurt Stock Market: Tesla Shares Dip Double-Digits
While the US stock market was closed on Friday for the Fourth of July (Independence Day), the Frankfurt stock exchange painted a grim picture. Tesla shares dipped more than 10 points on Friday’s trading session and settled at -9 points dipping by 3.40%. The US stock market could also face similar consequences when the markets open on Monday after the long Weekend. The development is putting TSLA stock under pressure as investors don’t want him to stray away from business activities.
In addition to the development, Azoria Partners postponed the launch of Tesla Innovation ETF due to Musk’s political involvement. The product had kick-started great hype but fizzled out as the institutional firm paused the ETFs. The firm released a statement saying that it is “taking a cautious approach” after Musk announced plans to form a political party. The move could affect Tesla shares on Monday and cause it to dip in the charts.
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“Tesla (shares) needs Musk as CEO and its biggest asset and not heading down the political route yet again. While at the same time getting on Trump’s bad side,” said veteran analyst Dan Ives of Wedbush Ives to Reuters. “It would also not shock us if the Tesla board gets involved at some point given the political nature of this endeavor depending on how far Musk takes it,” he said.