--- title: "Musk establishes the \"American Party,\" raising valuation concerns, Tesla's night trading plummets over 7%" description: "Tesla CEO Elon Musk announced the establishment of a new political party called \"American Party,\" triggering a strong market reaction, with Tesla's after-hours trading dropping over 7% at one point, r" type: "news" locale: "en" url: "https://longbridge.com/en/news/247450793.md" published_at: "2025-07-07T08:24:29.000Z" --- # Musk establishes the "American Party," raising valuation concerns, Tesla's night trading plummets over 7% > Tesla CEO Elon Musk announced the establishment of a new political party called "American Party," triggering a strong market reaction, with Tesla's after-hours trading dropping over 7% at one point, resulting in a market value loss of over $70 billion. Analysts pointed out that Musk's political move has weakened shareholders' confidence in Tesla's future, leading to a delay in ETF listings. Consumer sentiment towards Tesla has declined, and sales have also significantly dropped. Analysts warned that Musk's political gamble could exacerbate Tesla's valuation volatility, and investors should be cautious of short-term risks TradingKey - Tesla CEO Elon Musk announced the establishment of a new political party, the "American Party," on the social media platform X on July 5, 2025, Eastern Time, triggering a violent reaction in the capital markets. As a result, Tesla's after-hours trading once fell by more than 7%, with a market value evaporating by over $70 billion. As of the time of writing, Tesla's after-hours trading decline has not shown signs of stopping. After Musk announced the establishment of the new political party, James Fishback, an analyst at the American investment company Azoria Partners, stated last Saturday that they would postpone the listing of their Tesla ETF, citing that Musk's announcement weakened shareholders' confidence in Tesla's future. 【Tesla after-hours trading decline Source: Investing.com】 This move is Musk's response to an online poll conducted on July 4, which attracted 1.249 million participants, with 65.4% supporting the breaking of the two-party system to establish a new party representing centrists. Musk stated that the United States is on the brink of bankruptcy due to "waste and corruption" and urgently needs political reform. However, this high-profile declaration quickly raised market concerns, especially since Tesla has heavily relied on government subsidies and carbon credit income in recent years. The latest bill, "Big and Beautiful," which cancels electric vehicle tax credits, is expected to impact Tesla's profits by about $3.2 billion annually. The impact on the brand level is even more severe. Stifel data shows that consumer net favorability for Tesla has dropped from 9% in January 2024 to 3%, with European sales declining by 52.6% compared to the same period last year. Some consumers have explicitly stated that they are boycotting purchases due to Musk's stance. From a fundamental perspective, Tesla's Q2 2025 delivery volume was 384,100 vehicles, a decrease of 13.5% compared to the same period last year. The company is currently betting on its FSD and Robotaxi plans to reshape its growth story, but the commercialization process still carries significant uncertainty. Analysts unanimously agree that Musk's political moves are exacerbating Tesla's valuation volatility. JP Morgan analyst Ryan Brinkman stated that Musk's political adventures pose dual pressures on Tesla's brand and finances, and investors need to be wary of short-term volatility risks. Morgan Stanley analyst Adam Jonas also mentioned that Tesla's autonomous driving strategy is key to long-term growth, but current political risks may hinder its valuation recovery ### Related Stocks - [TSLA.US - Tesla](https://longbridge.com/en/quote/TSLA.US.md) - [TSDD.US - GraniteShares 2x Short TSLA Daily ETF](https://longbridge.com/en/quote/TSDD.US.md) - [TSLL.US - Direxion Daily TSLA Bull 2X Shares](https://longbridge.com/en/quote/TSLL.US.md) - [TSLQ.US - AXS TSLA Bear Daily ETF](https://longbridge.com/en/quote/TSLQ.US.md) - [09366.HK - XI2CSOPTSLA-U](https://longbridge.com/en/quote/09366.HK.md) - [07766.HK - XL2CSOPTSLA](https://longbridge.com/en/quote/07766.HK.md) - [07366.HK - XI2CSOPTSLA](https://longbridge.com/en/quote/07366.HK.md) - [TSLR.US - GraniteShares 2x Long TSLA Daily ETF](https://longbridge.com/en/quote/TSLR.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 播客：新的特斯拉（臨時）Cybertruck，Cybercab，福特希望中國進入美國市場，以及更多內容 | 在本週的 Electrek 播客中，主持人討論了可持續交通和能源的最新動態，包括新的臨時特斯拉 Cybertruck、Cybercab 的更新，以及福特在中國擴大其在美國市場存在的興趣。該播客每週五東部時間下午 4 點在 Electrek | [Link](https://longbridge.com/en/news/276484722.md) | | 分析 - 美國汽車製造商被捲入特朗普與加州電動汽車之戰的交火中 | 特朗普政府與加利福尼亞州之間關於汽車污染法規的法律鬥爭可能對汽車製造商產生重大財務影響。加利福尼亞州正在挑戰聯邦政府試圖撤銷其設定更嚴格排放標準的權力。如果加利福尼亞州勝訴，汽車製造商可能需要應對相互衝突的聯邦和州法規，這將影響他們的電動車 | [Link](https://longbridge.com/en/news/276323878.md) | | L & S Advisors Inc 在特斯拉公司持有價值 46.4 萬美元的頭寸 | L & S Advisors Inc 在第三季度將其在特斯拉公司（NASDAQ:TSLA）的持股減少了 93%，目前持有 1,043 股，價值 464,000 美元。其他機構投資者，如 NewEdge Wealth LLC 和 Signet | [Link](https://longbridge.com/en/news/276442380.md) | | 板岩的定價將在六月公佈，“空白板巖” 卡車的價格仍預計在兩萬美元中段範圍內 | Slate Auto，一家電動車初創公司，將在六月公佈其 “Blank Slate” 電動皮卡的定價。該車型預計將成為最實惠的電動車之一，初始目標定價低於 20,000 美元，儘管最近的聯邦激勵措施變化可能會影響這一點。這款卡車具有可定製的 | [Link](https://longbridge.com/en/news/276367534.md) | | 特斯拉將在銷售超過 63 萬台後停產 Model S 和 Model X | 特斯拉宣佈在銷售超過 63 萬輛後停產 Model S 和 Model X。首席執行官埃隆·馬斯克表示將重心轉向機器人技術，計劃將弗裏蒙特的工廠空間改造為 Optimus 機器人的中心。儘管收益下降，Model S 仍然是電動車行業的重要車 | [Link](https://longbridge.com/en/news/276490989.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.