Musk called the legislation a “disgusting abomination” and “pork-filled,” voicing frustration with its impact on the federal deficit. While Trump hinted that Musk’s anger stemmed from cuts to green energy tax credits, Musk has denied it.

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

Tesla shares sank Monday after CEO Elon Musk announced he would form a new political party in an escalation of his feud with President Donald Trump.

Shares of electric vehicle maker Tesla tumbled 8% in morning trading as the feud between CEO Elon Musk and Trump reignited over the weekend

Trump's Department of Government Efficiency led by Elon Musk faced resistance while attempting to reduce federal workforce and address the $37 trillion national debt.

Trump, making his first comments on Musk’s criticism of his bill during an Oval Office press conference, insinuated the Tesla CEO opposes his “One Big Beautiful Bill Act” because he is “upset” the electric vehicle tax credit was removed, adding he’s not sure he’ll remain friends with Musk and alleging Musk “knew the inner workings of the bill.”

Tesla ( TSLA -0.52%) stock is on the move again, and for the wrong reasons. The automaker's stock fell 7% on Monday after Wedbush analyst Dan Ives issued a grim report in response to CEO Elon Musk's plans to start a new political party.

Shares in Tesla tanked by as much as 7.6% in premarket trading Monday after its CEO Elon Musk said he is forming a new American political party, provoking an irate response from US President Donald Trump.

Tesla stock is sliding on Monday after CEO Elon Musk's latest foray into politics, and Wall Street is growing concerned over the loss of EV tax and regulatory credits stemming from Trump's "One Big Beautiful Bill.

Elon Musk reigniting his feud with the president is "stupid," longtime Tesla investor Ross Gerber said.