Billionaire Elon Musk’s electric vehicle (EV) manufacturing company, Tesla Inc., shares dropped nearly 7% on the pre-market session after Musk’s intent to open a political party named the “American Party” spooked US market investors. 

Tesla shares dropped nearly 7% to $291.96 at 4:01 a.m. (EDT) on the premarket Nasdaq on Monday, 7 July 2025, ahead of the Wall Street open. Shares are currently trading 6.23% lower at $294.59 as of 6:29 a.m. (EDT), compared to $315.35 at the previous market close on Thursday, last week. 

As of 12:43 p.m. (EDT) on Wall Street, Tesla Inc. shares were trading 7.33% lower at $292.24 during the stock market session on Monday, 7 July 2025, compared to $315.35 at the previous market close on Thursday last week. 

After the US Congress passed President Donald Trump’s One Big Beautiful Bill last week, Musk posted his intent to form the “American Party” to oppose the existing ‘Republican/Democrat Uniparty.’

“The America Party is needed to fight the Republican/Democrat Uniparty,” said Musk in a platform X post earlier today. This is not the first time he has openly posted about forming the party.