Virendra Pandit
New Delhi: His company’s net worth was down by a massive USD 68 billion in a single day on Monday, but the irrepressible Tesla and SpaceX CEO, Elon Musk, continued his push for his political outfit, America Party, and discussed politics with Andrew Yang, a former US Presidential candidate, the media reported on Tuesday.
Musk has spoken with Yang as he moves ahead with plans to create a new political party in the United States, according to Fox News.
The multibillionaire recently announced on his platform, X, that he has launched a new political party, “America Party,” aimed at challenging what he calls America’s “one-party system.” He hopes to field candidates in next year’s midterm elections to the US Congress as an alternative to the two main US political parties, the ruling Republicans and the Opposition Democrats, which he mocked as “uniparty.”
Politico first reported the conversation between Musk and Yang, and later confirmed by Fox News. They talked about Musk’s plans and what will be needed to start a successful third party.
“I’m excited for anyone who wants to move on from the duopoly,” Yang said in a statement to Fox News, referring to the two mainstream parties. “And I’m happy to help give someone a sense of what the path looks like.”
Amid these political developments, as some Republicans asked US President Donald Trump to deport Musk because of his ‘controversial’ citizenship, the billionaire has lost a lot of his wealth.
His electric vehicle company Tesla’s stock price fell nearly 7 percent on Monday, and 27 percent this year, as its CEO devoted more time in politics, hurting the EV company’s stand with car buyers.
Tesla shares nosedived on Monday also after Musk announced to launch a political party, going deeper into an area that has adversely impacted his businesses.
Tesla stock price fell 6.8 percent to close at USD 293.94 on Nasdaq, as Musk’s announcement heightened investor worries amid declining EV car sales and his political pursuit along with his ongoing feud with President Trump. Investors are now concerned that Musk’s political ambition could further distract him from his role at Tesla.
The steep fall resulted in Tesla losing more than USD 68 billion in market cap on Monday.
Musk unveiled “The America Party” over the weekend after a public dispute with Trump on the tax-cut and spending bill. The President, an ally of Musk until May, called the latest idea of a new political outfit “ridiculous.”
His 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 claiming that board members were looking to replace the Tesla CEO.
“The company is set to lose more than USD 80 billion in market valuation if current losses hold,” equity analyst Jed Dorsheimer was quoted as saying.
The rout witnessed by Tesla shares on Monday has affected Elon Musk’s net worth too. The billionaire, the wealthiest person in the world, lost USD 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 USD 86.7 billion. His current net worth stands at USD 346 billion, the media reported.
President 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 USD 150 billion in Tesla’s market value in a single day.