Elon Musk's America Party Is A Move In The 'Opposite Direction,' Says Dan Ives, Analyst Gary Black Says Difficult To Predict Impact On Tesla Brand Short Term

Tesla Inc.TSLACEOElon Muskannounced anew political entityover the weekend, dubbed the “America Party,” which has since sparked mixed reactions among investors, analysts and loyalists.Check out the current price ofTSLA stock here.What Happened:On Sunday, in a post on X, Wedbush Securities senior analystDan Iveswas blunt in his assessment, saying Musk's move was “exactly the opposite direction” of what most investors would have wanted him to take, during what he refers to as a “crucial period for Tesla.”Ives says he gets why Musk is doing this, but adds that it’s just causing exhaustion for investors in the company, as the stock dropped over 6% in pre-market trade, before recovering to -0.85% at the time of writing this, in response to the announcement.See Also:Peter Thiel Says Elon Musk Vision Of A Billion Humanoid Robots In Ten Years Makes All The Hand-Wringing Over Deficits Look ‘Unthought-Through’Long-time Tesla bull and CEO Gerber Kawasaki,Ross Gerber, also voiced his frustration, saying that “Waymo has solved autonomous driving. Meanwhile, Elon is starting a new political party.”His remark underscores concerns that Musk's focus may be drifting from Tesla's operational priorities at a pivotal time for the company.The Managing Partner at the Future Fund,Gary Black, however, downplayed the impact this is set to have on Tesla, saying that he disagrees “with the doomsday crowd,” and believes it is unlikely to have any significant impact on the company’s shares in the long-term, while acknowledging that “it's difficult to predict the short term impact.”Black says that it’s “highly unlikely” for this new political venture to gain much traction, noting the historical difficulty third parties have faced in the U.S. This, he says, would lead Musk to eventually focus on something else.Musk’s loyalists and supporters, however, continue to rally behind him, with Tesla investor and influencerDave Leedefending the billionaire entrepreneur’s motivations in a lengthy post on X, citing several personal sacrifices that Musk has made in recent months for national interest.“You can’t make this stuff up,” Lee says, referring to PresidentDonald Trump’slatest tirade against Musk, where he says that the latter has gone “off the rails” and is a “trainwreck,” despite him toiling and putting in 16-plus hour workdays leading the Department of Government Efficiency, only to havehis work undoneby the “One Big, Beautiful Bill.”Why It Matters:Last week, Trump asked Musk to “close up shop” in response to theescalating feud with Musk, and the latter’s growing criticism of the “Big, Beautiful Bill.”Trump’s former personal attorney,Michael Cohen, who’s since become a vocal critic of the administration after serving a prison sentence for various charges, came outin support of Muskon Sunday.Cohen asks Musk to send him a message if he wants to know “how to fight political guerrilla warfare,” while adding that he would lose otherwise, in a post on X.Price Action:Tesla shares ended Thursday down 0.10%, trading at $315.35, and are down 0.85% after hours owing to Musk’s political pivot. The shares have recovered by a 6% decline after hours just a couple of hours ago.Shares of Tesla score well on Growth and Quality, while having a favorable price trend in the short, medium and long terms. Clickherefor deeper insights into the stock, its peers and competitors.Photo Courtesy: Tada Images On Shutterstock.comLoading...Loading...Read More:Anthony Scaramucci Wants ‘To Discuss’ New Party With Musk, Mark Cuban Offers Ballot Access AidTSLATesla Inc$312.70-0.93%Stock Score Locked: Edge Members OnlyBenzinga Rankings give you vital metrics on any stock – anytime.Unlock RankingsEdge RankingsMomentum46.72Growth90.79Quality66.72Value10.04Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. . .Posted In:Large CapNewsDan IvesDave LeeElon MuskGary BlackRoss GerberThe America PartyWeibo