Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.

Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk‘s announcement of a new political party has had a significant impact on the electric vehicle maker. The company’s stock plummeted by 6.79% on Monday, resulting in a loss of over $68 billion in market capitalization.

What Happened: The stock drop came after Musk announced plans to launch a new political party, raising investor concerns about possible effects on Tesla’s brand and business, according to market data.

Don’t Miss:

• GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — Become an Investor in This $41.3M Clean Energy Brand Today

• Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential.

Musk revealed his plan to establish the “America Party,” which would focus on a few Senate seats and House districts. This announcement has intensified worries about Musk’s increasing involvement in politics, a trend that has previously unsettled investors.

President Donald Trump’s initial praise for Musk’s political activities has turned into criticism, with the two clashing over various policy issues. Trump has labeled Musk’s party formation as “ridiculous” and accused him of going “completely off the rails.”

Why It Matters: Musk’s return to politics has drawn criticism from industry veterans. Ross Gerber, co-founder of Gerber Kawasaki, and Dan Ives, from Wedbush Securities, have criticized Musk’s political re-entry.

They have also questioned Tesla’s Board of Directors as the company’s stock declined by almost 7% in a single session on Monday.

Moreover, Tesla’s stock has been affected by other factors, including a sharp drop in sales in the Chinese domestic car market during the first week of July, despite strong second-quarter deliveries. This has added to the challenges facing the company.

Read Next:

• Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — And You Can Invest At Just $6.37/Share

• If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?

Image Via Shutterstock

This article Tesla Tanks $68 Billion As Elon Musk Unveils 'America Party'—Investors Rattle Over Political Pivot, Trump Backlash Adds Fuel originally appeared on Benzinga.com