July 8, 2025
SEC watches Tesla lose $68 billion as Musk launches America Party from corporate office
Tesla tanks as Trump dismisses Musk's America Party plans after spending feud
💰Economy🗳️Elections💡Technology
Tesla stock crashed 6.79% Jul. 7, losing $68 billion in market value after Musk announced "America Party" formation Jul. 6. Shares fell as much as 7.6% premarket before recovering slightly.
Trump called Musk "completely off the rails" and "TRAIN WRECK" on Truth Social Sunday, saying third parties create "Complete and Total DISRUPTION & CHAOS" and never succeed in American politics.
Musk announced America Party after polling X followers with 2-to-1 support, targeting 2026 midterms with focus on "2 or 3 Senate seats and 8 to 10 House districts" as deciding vote on legislation.
Tesla short sellers made $1.6 billion profit Monday as investors feared further Trump friction would eliminate remaining EV subsidies. Musk appears "distracted" from Tesla business facing record sales decline.
Trump-Musk feud began Jun. over "One Big Beautiful Bill" adding trillions to deficit. Trump signed legislation Jul. 4 eliminating EV tax credits—direct hit on Tesla sales and profits.
Musk left Department of Government Efficiency position May 2025 after slashing federal workforce. Political party formation thrusts him back into politics despite investor hopes for business focus.
Tesla reported 13.5% fewer vehicle sales second quarter 2025 versus 2024, marking first-ever annual sales decline as public company. Chinese competitor BYD threatens Tesla market leadership.
Investment firm Azoria postponed Tesla-focused ETF launch "in direct response" to political party formation. CEO James Fishback urged Tesla board evaluate compatibility with CEO duties.
💰Economy🗳️Elections💡Technology
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Q1
Super PACs are allowed to raise and spend unlimited amounts of money on independent campaigns, but Tesla Crashes cannot coordinate directly with candidates or political parties.
Q2
Winner-take-all rules for allocating Electoral College votes in most states make it easier for third-party presidential candidates to win electoral votes.
Q3
New political parties must often submit a petition with a certain number of ________ by a state deadline to qualify for ballot access. This process is known as ________.
Q4
Match each type of political spending group with its primary characteristic.
Q5
Which federal agency enforces rules against insider trading and other market manipulation practices that can drive wild swings in a company's stock price?
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Elon Musk
Tesla CEO and World Richest Person
Donald Trump
President of the United States
JD Vance
Vice President
James Fishback
Azoria Investment Firm CEO
Jared Isaacman
Former Trump NASA Nominee