Tesla slides 7% as Musk's 'America Party' reignites investor angst
(REUTERS)Tesla shares fell nearly 7% in premarket trading on Monday, after CEO Elon Musk's plans to launch a new US political party reignited investor concerns about his commitment to the electric-vehicle maker's future.Musk, the former head of the Department of Government Efficiency (DOGE), unveiled the 'America Party' on Saturday, voicing his displeasure over President Donald Trump's 'One Big, Beautiful Bill'.Musk's move marks a fresh escalation in his feud with Trump and comes close on the heels of Tesla posting a second straight drop in deliveries, further denting investor confidence in the stock that has lost more than 21% so far this year.Trump and Musk's relationship erupted into an all-out social media brawl early June over the tax bill, with the US president threatening to cut Musk's government contracts and subsidies.Musk, who spent nearly $300 million backing Trump and other Republicans last year, said in May he would scale back political spending and remain Tesla CEO for another five years, aiming to ease investor concerns over his focus and government ties."Investors had cheered Musk stepping back from frontline politics but are now worried he's going to (get) sucked back in and take his eye off Tesla," said Neil Wilson, UK investor strategist at Saxo Markets.The first signs of investor unease surfaced soon after Musk's announcement, with investment firm Azoria Partners delaying the listing of a Tesla exchange-traded fund, Azoria CEO James Fishback said in a post on X.Trump on Sunday called Musk's plans to form the "America Party" "ridiculous," saying the Musk ally he once named to lead NASA would have presented a conflict of interest given Musk's business interests in space.Tensions with Trump, struggling sales and an aging vehicle line-up have weighed heavily on Tesla's stock, even as the company bets on growth from autonomous vehicles.
The stock, which soared to over $488 in December after Trump's November re-election, has lost 35% since then and closed last week at $315.35.
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Middle East Eye
43 minutes ago
- Middle East Eye
As Trump and Netanyahu eye normalisation deals, Iran looms large
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During the Israel-Iran conflict, Israel destroyed the Islamic Republic's air defences and ballistic missile launchpads. Israeli strikes killed Iranian generals and scientists. It culminated in the US bombing Iran's Fordow, Natanz and Isfahan nuclear sites. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters Israel, Iran, and the US have all claimed victory in the conflict, but the end result is far from conclusive. Middle East Eye reported that the US's powerful Gulf allies felt "vindicated' that they had restored ties with Iran and distanced themselves from Israel's attack. While Arab officials watched Israeli jets dominate Iran's skies, they also saw Iranian missiles slam into Tel Aviv. One Arab official told MEE that there was an inkling in some Arab capitals that Netanyahu would seek Trump's backing for a new offensive on Iran. 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Gaza ceasefire talks stalled The current proposal is for a two-month ceasefire, with guarantees from the US, Qatar, and Egypt, to extend the truce while talks on a permanent end to the conflict continue. The proposal mirrors that which Israel and Hamas struck in January. Israel unilaterally withdrew from that short-lived agreement in March and resumed attacking Gaza. 'MBS will insist on something serious. Not the sneaky stuff the Israelis want to offer' - Arab official Having been burned once, the main obstacle is Hamas's insistence that Israel commit to a full ceasefire in the Gaza Strip, after the group releases the fewer than two dozen captives believed to be alive and not resume its attacks. Indirect talks between Hamas and Israel in Doha, Qatar, ended with no breakthrough, the AFP reported on Monday. The situation in Gaza is deteriorating with constant Israeli strikes. A lack of fuel, medicine and food has caused basic services to collapse. 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Al Etihad
2 hours ago
- Al Etihad
Trump to meet Netanyahu in push for Gaza deal
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Al Etihad
3 hours ago
- Al Etihad
White House: 12 other countries to receive trade letters
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