Tesla shares fall 7%, $68 billion market cap lost in single day — Elon Musk’s net worth drops by THIS amount | Company Business News-OxBig News Network

Tesla shares nosedived on Monday as its CEO Elon Musk announced he is launching a political party, going deeper into an area that has impacted his businesses.

Tesla stock price fell 6.8 per cent to close at $293.94 on Nasdaq, as Musk’s announcement heightened investor worries amid declining sales and a political pursuit of Musk along with his feud with US President Donald Trump. Investors are now concerned that Musk’s political ambition could further distract him from his role at Tesla.

The steep drop marks one of the worst single-day performances for Tesla this year.

Musk unveiled the ‘America Party’ over the weekend after a public dispute with President Donald Trump on the tax-cut and spending bill. Trump, once an ally of Musk, called the latest idea “ridiculous”.

$68 billion market cap gone

The steep fall resulted in Tesla losing more than $68 billion in market cap in a single day on Monday.

Musk’s latest move raises questions around the EV company 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 Tesla CEO.

The company is set to lose more than $80 billion in market valuation if current losses hold, according to a report by Reuters.

Tesla stock price has fallen 27 per cent this year as its CEO has devoted more time in politics, hurting Tesla’s stand with car buyers.

“The company is set to lose more than $80 billion in market valuation if current losses hold,” equity analyst Jed Dorsheimer was quoted as saying by Bloomberg.

Elon Musk’s net worth sinks

The rout witnessed by Tesla shares on Monday has affected Elon Musk’s net worth too.

The billionaire, who is the richest person in the world, lost $15.3 billion in his net worth in a single day on July 7. Year-to-date, the Tesla CEO’s wealth has dropped by $86.7 billion.

Elon Musk’s current net worth stands at $346 billion, according to the Bloomberg Billionaire’s Index.

Trump had threatened to cut off the billions of dollars in subsidies that Musk’s companies receive after their feud erupted into an all-out social media brawl in early June, wiping off $150 billion in Tesla’s market value in a single day.

(With inputs from Reuters)