Tesla investors have a very clear message for Elon Musk: Stay away from politics

Core Viewpoint - Elon Musk's renewed political engagement has led to a significant decline in Tesla's stock, with shares falling over 7% as investors express concern over his focus on politics rather than the company's performance [1][2]. Group 1: Stock Performance - Tesla's stock has declined 22% this year, and the recent political developments have exacerbated investor concerns [2]. - In the four weeks following Musk's announcement to focus on Tesla instead of DOGE, the stock rose 40%, indicating a correlation between Musk's focus and stock performance [6]. - Historical data shows that Tesla shares tend to fall when Musk is involved in political matters, while they rise when he is committed to Tesla [5]. Group 2: Investor Sentiment - Analysts from William Blair expressed that investors are growing weary of Musk's distractions at a critical time for the business [3]. - Dan Ives from Wedbush Securities noted that Musk's political move has taken a turn for the worse, suggesting that investors prefer his focus to be on the robotaxi rollout [4]. - Shareholders have voiced concerns about Musk's political ambitions, with some calling for the board to evaluate his compatibility with his CEO responsibilities [12][13]. Group 3: Political Developments - Musk announced the formation of a new political party, "the America party," which aims to challenge both Republicans and Democrats [1][7]. - This political engagement has raised questions about Musk's future as Tesla's CEO, with some stakeholders urging for clarity on his political ambitions [12][13].