Tesla shares tumbled after the electric-car maker’s chief executive Elon Musk said he would form a new political party, escalating a feud with US President Donald Trump that could imperil the billionaire’s business empire.
Shares in Tesla closed 6.8 per cent lower on Monday, taking its decline to about 14 per cent over the past five weeks, as Musk has repeatedly clashed with Trump.
A return to political activism is contrary to what Musk promised shareholders in late April, when he said he would be “allocating far more of my time to Tesla” to help arrest a plunge in electric vehicle sales.
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