Tesla Shares Fall Over 5% In Overnight Trading As Elon Musk Jumps Back Into Politics

Shares of Elon Musk-led EV giant Tesla Inc. (NASDAQ:TSLA) declined in overnight trading amid the billionaire's feud with President Donald Trump, which began over the latter's “Big, Beautiful Bill.”

What Happened: Tesla shares fell more than 5% in overnight trading, currently trading for around $297.70, as per data from Robinhood.

Why It Matters: The news comes in as Musk announced the launch of a new political party following the Senate's approval of the Big Beautiful Bill. The new tax bill has axed the $7500 EV credit as well as made ZEV or Zero Emission vehicle credits, a major revenue stream for Tesla, effectively redundant. 

The billionaire has been slammed by Trump, who in a post on Truth Social, called the move "a train wreck" and said that there is no need for a third political party in the U.S.

The move has also invited criticism from experts, with Wedbush Securities analyst and Tesla bull Dan Ives calling it a move in the opposite direction for the EV giant.

Tesla offers satisfactory Momentum while scoring well on the Growth and Quality metrics, but the stock offers poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!

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