Shares of Tesla (TSLA) are falling after the company’s CEO Elon Musk announced over the weekend the formation of a new political party. William Blair this morning downgraded its rating on Tesla to Market Perform, citing negative implications from President Trump’s Big Beautiful Bill and Musk’s foray back into politics. “Investors are growing tired of the distraction at a point when the business needs Musk’s attention the most and only see downside from his dip back into politics,” William Blair analyst Jed Dorsheimer told investors. Musk over the weekend said via X, “By a factor of 2 to 1, you want a new political party and you shall have it! When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom…Backing a candidate for president is not out of the question, but the focus for the next 12 months is on the House and the Senate.” Tesla shares are down 6%, or $20.39, to $294.96 in premarket trading.
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Read More on TSLA:
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- William Blair downgrades Tesla on headwinds from Big Beautiful Bill
- Tesla downgraded to Market Perform from Outperform at William Blair