
Tesla slides as Musk's ‘America Party' heightens investor worries
Musk unveiled the 'America Party' on Saturday after openly sparring with Donald Trump over the U.S. president's tax-cut and spending bill.
Their feud erupted into an all-out social media brawl in early June, with Trump threatening to cut off the billions of dollars in subsidies that Musk's companies receive from the federal government.
Musk's political move comes days after Tesla posted a second straight drop in quarterly deliveries, piling pressure on its stock as the company grapples with fierce competition and an aging vehicle line-up.
'Investors are worried about two things – one is more Trump ire affecting subsidies and the other, more importantly, is a distracted Musk,' said Neil Wilson, U.K. investor strategist at Saxo Markets.
Tesla's stock, which hit a record high in December after Trump's November re-election, has lost 35% since then, making it the worst-performing stock among 'the Magnificent Seven' group of high-growth U.S. companies this year.
Investors had in May cheered Musk's decision to scale back his political involvement and remain Tesla CEO for another five years. He had spent nearly $300 million around Trump's re-election campaign last year.
'But now (they) are worried he's going to (get) sucked back in and take his eye off Tesla,' Wilson said.
Wedbush analyst Dan Ives, a Tesla bull, said many investors are feeling a 'sense of exhaustion' over Musk's insistence on immersing himself in politics.
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.
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.
Tesla board moves
Azoria Partners CEO James Fishback posted several critical comments on X about Musk's new party, and called for the Tesla board to clarify Musk's political ambitions and evaluate if his political involvement is compatible with his obligations to Tesla as CEO.
The new party undermines the confidence shareholders had that Musk would be focusing more on the company, Fishback said.
Musk's latest political move raises questions around Tesla board's course of action. Its chair, Robyn Denholm, in May denied a Wall Street Journal report that said board members were looking to replace the CEO.
Tesla's board, which has been criticized for failing to provide oversight of its combative, headline-making CEO, faces a dilemma managing him as he oversees five other companies and his personal political ambitions.
'This is exactly the kind of thing a board of directors would curtail - removing the CEO if he refused to curtail these kinds of activities,' said Ann Lipton, a professor at the University of Colorado Law School and an expert in business law.
'The Tesla board has been fairly supine; they have not, at least not in any demonstrable way, taken any action to force Musk to limit his outside ventures, and it's difficult to imagine they would begin now.'
By Joel Jose
(Reporting by Joel Jose in Bengaluru and Amanda Cooper in London; additional reporting by Medha Singh; Editing by Alun John and Saumyadeb Chakrabarty)
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CBC
13 minutes ago
- CBC
Lithium-ion battery fires jump 162% in Toronto over 2 years, city says
The number of fires sparked by lithium-ion batteries in Toronto has more than doubled in the span of two years, the city says. Between 2022 and 2024 the number of fires jumped 162 per cent, from 29 to 76, according to a city news release Monday. So far this year, Toronto Fire has responded to 43 fires, the city says. "We're seeing a concerning rise in fires caused by lithium-ion batteries, many of which are preventable," said Fire Chief Jim Jessop in the release. The batteries are commonly found in e-bikes, smartphones, laptops and many other electronic devices. When used correctly, lithium-ion batteries are generally safe, the city release says. But the city is reminding people that modifying or tampering with these batteries can be dangerous, saying it's a common cause of many recent fires. The reminder comes as Toronto Fire kick-starts its second annual campaign aimed at educating people on the fire risks associated with lithium-ion batteries. There are a few things users can do to reduce the risk of a fire, the city says, aside from not tinkering with the batteries. People should only use certified, manufacturer-approved batteries and chargers and keep them in sight while they charge, the city says. Should users notice anything out of the ordinary with a battery — strange odours, discolouration, excessive heat, change in shape, leaking or odd noises — the city says they should stop using it and contact the manufacturer.


Globe and Mail
14 minutes ago
- Globe and Mail
The E.W. Scripps Company Rises 51% YTD: Should You Buy the Stock Now?
The E.W. Scripps Company SSP shares have rallied 51.1% in the year-to-date (YTD) period, outperforming the Zacks Broadcast Radio and Television industry's growth of 34.1% and the Zacks Consumer Discretionary sector's return of 12.4%. SSP has also outperformed its competitors, Nexstar Media Group NXST, Sinclair SBGI and Paramount Global PARA. NXST and PARA shares have returned 14.7% and 23.3% YTD, respectively, while SBGI has lost 8.4%. SSP shares have been riding on the momentum of strong execution in its live sports and Connected TV (CTV) strategies, coupled with disciplined cost management. The company has renewed its partnerships in women's sports and expanded its line-up with new events, strengthening advertiser demand. These initiatives, along with a clear focus on debt reduction and operational efficiency, have bolstered investor confidence. Let's delve deeper into some of the factors that are helping SSP to understand why the stock is a buy now. SSP's YTD Price Performance SSP Expands Its Sports Line-Up With New Partnerships SSP is doubling down on its sports programming strategy with two powerful moves that strengthen its reach and improve audience engagement. A renewed multi-year deal with the WNBA ensures that ION remains the league's national home for Friday night games, including its exclusive studio show. With growing viewership and fan enthusiasm, this partnership solidifies SSP's foothold in live women's sports. At the same time, SSP has signed a new agreement to broadcast Tampa Bay Lightning games at no cost to viewers. By launching a new local station, The Spot - Tampa Bay 66, and pairing it with app-based streaming, SSP is creating a viewing experience both on-air and online. This hybrid model improves viewer loyalty and opens new advertising and distribution opportunities. Together, these deals are likely to support top-line growth through increased ad sales and strengthen SSP's position in live sports. SSP Rides on Scripps Networks' Improving Margins The E.W. Scripps Company is holding its ground in the competitive national network and CTV space, even as rivals like Nexstar Media Group, Sinclair and Paramount Global step up their efforts. Nexstar is bolstering its live sports presence with branded segments during NASCAR broadcasts on The CW, aiming to capture premium ad dollars. Sinclair, meanwhile, has seen rapid momentum from its multicast networks thanks to rebranding and fan-first programming events. Paramount Global continues to scale Pluto TV, strengthening its grip on the FAST ecosystem with broad national reach and curated content. Despite these aggressive plays, SSP has leaned into a focused live sports strategy and cost discipline, emerging as a margin leader in the space. The Scripps Networks division has become a strategic growth lever for The E.W. Scripps Company, driven by a focused push into live sports and disciplined cost control. By doubling down on high-demand women's sports programming and refining its national network footprint, SSP has positioned the segment to support margin expansion. Ongoing partnerships with the WNBA and NWSL, along with new additions like the SI Women's Games and Fort Myers Tip-off, are expected to improve ad inventory and strengthen seasonal performance through the remainder of the year. These distribution agreements are expected to provide valuable live content that attracts advertisers. In the first quarter of 2025, Scripps Networks contributed 37.8% of total company revenues. While segment revenues declined 5.4% year over year, profit increased from $49.7 million to $64.1 million. A 16% drop in expenses pushed segment margin to 32%, its highest since late 2022. SSP reaffirmed its 2025 target of 400-600 basis points of margin expansion but noted that its first-quarter results have already exceeded that range due to early execution of cost-saving measures. SSP's Earnings Estimate Revisions Show an Upward Trend The Zacks Consensus Estimate for 2025 earnings is pegged at 8 cents per share, which has been revised upward by a penny over the past 60 days, indicating a 92.59% year-over-year decline. The consensus mark for 2025 revenues is pegged at $2.19 billion, suggesting a 12.81% year-over-year decline. SSP Shares are Trading Cheap SSP stock is currently trading at a forward 12-month Price/Earnings ratio of 7.72X compared with the industry's 32.10X. This makes the stock a great pick for a value investor. SSP has a Value Score of A, reinforcing an attractive valuation for SSP at the moment. SSP's P/E (F12M) Image Source: Zacks Investment Research Here's Why You Should Buy SSP Stock Now SSP is a strong buy backed by clear strategic execution, expanding sports content and a growing presence in CTV. The company has already surpassed its margin expansion targets for 2025 and continues to attract advertiser demand through premium live programming. Its renewed partnerships with major sports leagues and investments in distribution are creating multiple revenue tailwinds. As SSP sharpens its national network footprint and deepens audience engagement, the company is poised to sustain momentum through the rest of the year. With solid cost control and a highly attractive valuation, SSP is well-positioned to deliver long-term value in 2025. SSP currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Sinclair, Inc. (SBGI): Free Stock Analysis Report E.W. Scripps Company (The) (SSP): Free Stock Analysis Report Nexstar Media Group, Inc. (NXST): Free Stock Analysis Report Paramount Global (PARA): Free Stock Analysis Report


Ottawa Citizen
16 minutes ago
- Ottawa Citizen
Silver lining: Alberta natural gas — and budget — get boost with historic LNG ocean shipment
Article content If LNG prices are the silver lining of non-renewables, the light clouds could be gas prices — and the shadow comes from U.S. President Donald Trump's tariffs. Article content 'Overall, the oil market is good, not great,' Botterill said. Article content OPEC+ has reversed voluntary production cuts, announcing consecutive monthly production increases since April. Article content 'This strategy aims to capture greater market share from non-OPEC producers amidst a volatile global trade environment influenced by U.S. tariffs,' the Deloitte & Touche report found. Article content The Energy Information Administration expects oil production growth in 2025 will surpass annual demand growth, posing a risk of oversupply. Article content Article content 'We are in a little bit of an oversupply place right now around the globe, meaning that I think we're probably going to see OPEC probably stay the line and stay the course, because I think they'd much rather see higher prices than flooding the market,' Botterill said. Article content 'Obviously, with some of the conflicts going on right now, there's big supply chain issues and cargoes not being able to move directions we'd like to move them due to foreign conflicts, so we may see some problems on that.' Article content Overall, in the Canadian market, the discount on Western Canadian Select (WCS) to WTI settlement prices has narrowed with markedly low fluctuation, to around US$10 in the past quarter, achieving one of the lowest quarterly averages observed for this differential in recent years, the Deloitte & Touche report found. Article content Much of the credit goes to the 2024 twinning of the Trans Mountain Pipeline from Edmonton to Burnaby, B.C. and Washington state, with a 'batching' process allowing different petroleum products—and more than twice as much of it—to move through the pipeline in sequence. Article content Article content 'This suggests that the TMX, which was completed last year to enable pipeline egress for heavy crude from Western Canada, is the main factor sustaining the narrow differential and appears to have fundamentally affected the Canadian oil market on whole,' the report found. Article content 'What has been great about the Trans Mountain Pipeline extension is having that those extra seaborne volumes going out into Asia have strengthened Canadian received prices. It kind of proves the case that, hey, if we have more markets that we can get to, people have to compete for our volumes, right?' Botterill said. Article content In Q3 2025, Canadian oil differentials may tighten further as wildfires across Alberta have contributed to the shut-in of 7 per cent of Canada's production, according to Reuters estimates. Article content The Alberta government saw the 2024-25 fiscal year ending March 31 with a healthy bottom line, with a $4.7 billion injection from non-renewable resource revenue and record-high production, as well as the opening of the Trans Mountain pipeline expansion in May 2024.