• Elon Musk is diving back into US politics, and Tesla investors are not happy about it.
• Tesla's stock price plunged on Monday after the billionaire said he would form a new political party.
• Analysts said investors are "growing tired" of the distraction posed by Musk's political involvement.

Elon Musk is diving headfirst back into politics, and Tesla investors are not happy about it.

The electric carmaker's stock fell more than 7% on Monday as investors digested Musk's renewed feud with President Donald Trump and his announcement that he would set up a new political party.

After polling users on his social media platform X, the billionaire unveiled "the America party" on Sunday, with Trump responding that Musk had "gone off the rails."

It comes just months after the Tesla CEO told shareholders that he would be spending less time on politics and turning his full attention to the EV giant, which has had a difficult year so far.

Tesla's sales have collapsed worldwide amid renewed EV competition and backlash over Musk's work at DOGE, and the company is currently in the middle of a critical robotaxi launch in Austin.

For Tesla investors and analysts who have already witnessed the stock decline 22% this year, Musk wading back into the political fray is the last thing they want to see.

"We expect that 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," wrote William Blair analysts Jed Dorsheimer and Mark Shooter in a note on Monday.

"We would prefer this effort to be channeled towards the robotaxi rollout at this critical juncture," added the analysts. The investment firm downgraded Tesla to the equivalent of hold on the back of the expected negative impact of Trump's "Big Beautiful Bill."

Wedbush Securities analyst and Tesla Bull Dan Ives, who previously called on Musk to spend more time on Tesla while the billionaire was working on DOGE earlier this year, said that things had now "taken a turn for the worst" with Musk's latest political move.

"Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story," wrote Ives in a note on Sunday.

Monday's share price fall reflects a wider trend in Tesla's stock in recent months. Shares have tended to fall when Musk is more focused on politics, while rising when he has shown a public commitment to Tesla.

In the four weeks after Musk said he would step back from DOGE and focus on his EV firm in April, Tesla's share price rose 40%.

In March, when Musk held a surprise livestream to discuss Tesla's ongoing projects, shares jumped 13% in the following week's trading.

'What is this guy doing?'

Musk's decision to form a new political party, which he has suggested will take on Republicans and Democrats and focus heavily on reducing government spending, also sparked renewed questions from some quarters about his future as Tesla's CEO.

Former DOGE advisor James Fishbank announced on Sunday that his anti-DEI investment firm, Azoria, would postpone a planned Tesla ETF in response to Musk's actions, which he criticized as a "ridiculous stunt."

"I encourage the Board to meet immediately and ask Elon to clarify his political ambitions and evaluate whether they are compatible with his full-time obligations to Tesla as CEO," said Fishbank in a letter posted on X, which he said had been sent to Tesla board chair Robyn Denholm.

"I remain hopeful that Elon will return his full attention to Tesla. If not, I trust the Board will take appropriate action," he added.

Tesla shareholder and frequent Musk critic Ross Gerber also weighed in on Monday, saying that "no one wants the Elon First party" and accusing Tesla's board of failing to rein Musk in.

Gerber has previously called on Musk to step down as Tesla CEO, and told BI last week that the billionaire's war of words with Trump was the "nail in the coffin" for the EV maker.

"You're at this kind of point where it's like, 'What is this guy doing?' You know? You're supposed to be selling cars and robotaxis, and instead we're fighting with the President of the United States," Gerber previously told BI.

Tesla and Musk did not respond to a request for comment, sent outside normal working hours.

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Global trade rules are about as hazy now as in early April, when the White House touted "90 deals in 90 days" that would ease the uncertainty.

Why it matters: Since the April 9 trade war de-escalation, businesses have been waiting for clarity on where tariffs will settle so they can adapt their supply chains and pricing accordingly.

• It now appears as if the July 9 deadline for those deals will pass with little certainty.
• For business leaders, the fear is that the trade wars started when Donald Trump took office don't have a firm end date, a worry that grows with each shifting deadline.

What they're saying: "Whatever deals there are going to be, let's just ink it and move on," says Sue Spence, the chair of the Institute for Supply Management's manufacturing business survey committee.

• "But even if that happens, there is such a disbelief it will stick," says Spence, who surveys manufacturers each month to gauge the industry's health.

What's new: Treasury Secretary Scott Bessent told CNBC early Monday that trade announcements were coming in the next 48 hours.

• Bessent said "we've had a lot of people change their tune in terms of negotiations" since Trump threatened that countries could revert back to the tariffs outlined on Liberation Day.
• "My mailbox was full last night with a lot of new offers, a lot of new proposals," he said.

Yes, but: Bessent also pointed to August 1 as the next date to watch, when countries that have not landed deals will see tariff rates revert back to those announced in early April.

• Trump posted on Truth Social last night that "UNITED STATES TARIFF letters and/or Deals with various Countries from around the World" will be delivered starting at noon Monday.

What to watch: Today sets off the latest murky timeline that business leaders will struggle to understand.

• The list of dates already includes July 21, when the U.S. and Canada are supposed to notch a deal. There is also Aug. 12, when the 90-day trade truce with China expires.
• The Trump administration has announced trade frameworks with the U.K. and Vietnam, though agreements with other major trading partners — Japan and Mexico, for instance — look uncertain.
• The European Commission's Ursula von der Leyen "had a good exchange" with Trump last night, the bloc said. It is a hint that talks might be moving in the right direction ahead of Wednesday, when tariffs on European goods are threatened to jump to 50%.

Tariff threats ahead

The prospect of substantially higher import taxes remains, even if there are a wave of tariff deals announced in the days ahead.

• The Commerce Department is considering the potential for tariffs on individual sectors — including chips, pharmaceuticals and more — under its trade authorities, Section 232 and Section 301.
• Trump last night threatened to impose additional tariffs on the "BRICS" (Brazil, Russia, India, China and South Africa), ahead of their annual gathering in South America.

The big picture: "Historically, fully fledged trade deals take, on average, three years to conclude, not three months," Morgan Stanley economists wrote in a note this morning.

• "Our best guess is that any near-term announcements will not be comprehensive and permanent, and will likely be some kind of blanket agreement," they add.
• "Even if we get a range of agreements on July 8/9, because of all the uncertainty noted above, the next question will obviously be, for how long is this agreement valid?"

The intrigue: Businesses are yearning for some clarity — a sense that whatever the new tariff regime may look like, it will remain relatively stable.

• Asked what certainty in this new era might look like, ISM's Spence says: "Enough time needs to go by with no other changes."
• "If I'm the CFO of a company, and there is a deal in place with China and Europe, and three months go by and there hasn't been a big change, relations seem good with no new threats — then maybe I am going to be comfortable enough to move forward with decisions I have delayed," Spence says.

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