Bloomberg Intelligence Tesla Slides on Concern Musk’s New Party Will Worsen Slump
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Jul 7, 2025 Elon Musk's new political party raises eyebrows as Tesla shares take a hit, prompting discussions on his influence and Tesla's governance challenges. The podcast dives into CoreWeave’s strategic acquisition of Core Scientific, aimed at bolstering its AI infrastructure amidst competitive pressures. It also features insights on TikTok, from its evolving app landscape to potential sales influenced by geopolitical dynamics and user concerns over data security. The broader tech industry's leasing strategies and implications for financial services round out the conversation.
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Tesla Shares Tumble as Musk's New Political Party Raises Investor Concerns
Tesla's stock fell over 7% after Elon Musk announced the formation of the "America Party," sparking fears investors have about potential distractions and political risks.
Craig Trudell explains investors worry Musk's political moves could alienate both Republicans and Democrats, complicating relations in Washington and distracting from Tesla's core business.
Despite Musk's previous promises to refocus on Tesla, his deviation into politics undermines investor confidence, compounded by disappointing vehicle sales numbers.
The Tesla board appears to have limited control over Musk, who remains firmly in charge, raising questions about governance amid these distractions.
Risks of Musk's Political Move
- Elon Musk's formation of a new political party, the "America Party," worries investors due to potential distraction and alienation from both political parties.
- This political move risks further damaging Tesla's brand and investors' confidence amid an ongoing sales slump.
Tax Bill Boosts Orphan Drug Benefits
- The recent tax bill changes orphan drug rules allowing drugs like Keytruda an extra year before Medicare price negotiations.
- This extension is a significant financial benefit to pharma, delaying price renegotiations on major cancer drugs.