Tesla shares drop 7% in premarket trading after Elon Musk says he is launching a political party

Core Viewpoint - Tesla shares experienced a decline of 7.13% in premarket trading following CEO Elon Musk's announcement of plans to establish a new political party called the "America Party" [1][2]. Group 1: Political Involvement - The "America Party" aims to focus on securing "just 2 or 3 Senate seats and 8 to 10 House districts," which Musk believes could influence contentious laws [2]. - Musk's political engagement has raised concerns among investors, particularly due to his previous role in the Department of Government Efficiency and collaboration with President Donald Trump, which some view as detrimental to Tesla's brand [2][3]. - Analysts express that Musk's deeper involvement in politics diverges from the interests of Tesla investors, especially during a critical period for the company [3]. Group 2: Investor Sentiment - There is a growing sense of exhaustion among Tesla investors regarding Musk's political pursuits, with some feeling that this direction is not aligned with their expectations for the company [4].