Overview

• Musk launched the America Party on July 5 to oppose President Trump’s recent budget bill
• Tesla shares slid nearly 8% on July 7, dropping below a $1 trillion valuation at market open
• Azoria Partners and other investors pressed Tesla’s board to demand Musk clarify how his political role aligns with his CEO duties
• Experts warn that U.S. institutional barriers make it highly unlikely for a third party to gain traction in national elections
• Tesla’s stock is down almost 40% since December and its April quarterly profits fell 71%, heightening investor sensitivity to Musk’s distractions