Dan Ives, an analyst with Wedbush Securities, wrote that Musk's continued push into politics was "exactly the opposite direction" investors wanted to see.

The predictable unwinding of Elon Musk ’s romance with Donald Trump is obviously bad news for Tesla. Not only has Trump recently scrapped electrical vehicle subsidies, but Musk is now making a show of flirting with his own political party, trying to make Trump jealous. So much for focussing on Tesla!

The stock drop comes amid Musk's announcement of a new political party, which William Blair and other analysts say risks diverting attention during a crucial autonomous and roboti