Mon Jul 07 08:44:54 UTC 2025: Here’s a summary and a news article rewrite based on the provided text:

**Summary:**

This news snippet, published on July 7, 2025, reports that Tesla stock fell over 3% following Elon Musk’s announcement of forming a new U.S. political party. Analysts fear Musk’s increased political involvement and escalating feud with President Donald Trump will negatively impact Tesla’s stock. Trump has already criticized Musk’s political ambitions and past appointments. The article suggests Tesla’s board might need to intervene depending on how far Musk pursues his political endeavors.

**News Article:**

**Tesla Shares Plunge Amid Musk’s Political Ambitions**

*London, July 7, 2025* – Tesla stock experienced a sharp decline of over 3% in early trading today, following Elon Musk’s announcement of his intention to form a new political party in the United States, dubbed the “America Party”. The drop reflects investor anxiety over Musk’s expanding political activities and a deepening feud with President Donald Trump.

Veteran tech analyst Dan Ives of Wedbush has warned that Musk’s increased focus on politics could negatively impact Tesla, emphasizing that Musk’s role as CEO is crucial to the company’s success. “Tesla needs Musk as CEO and its biggest asset, not heading down the political route yet again…while at the same time getting on Trump’s bad side,” Ives noted. He even suggested the Tesla board may need to step in if Musk’s political involvement becomes too extensive.

President Trump has already criticized Musk’s political aspirations, calling the “America Party” plans “ridiculous.” He also revisited earlier concerns about a potential conflict of interest stemming from Musk’s business ventures and the Trump-era appointment of a Musk ally to lead NASA.

The stock decline underscores the market’s sensitivity to Musk’s actions, particularly given Tesla’s reliance on his leadership and vision. Investors are closely monitoring the situation as Musk’s political ambitions unfold.

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