Tesla shares fall after Musk's party announcement

The automaker is struggling with declining deliveries. Analysts believe that Musk's right-wing views and political activities have damaged the Tesla brand and contributed to dwindling buyer interest. Following Musk's announcement, several observers expressed criticism.

Dan Ives of Wedbush Securities called for the board to intervene. Jed Dorsheimer of the financial firm William Blair emphasized that investors viewed the foray into politics as a distraction, while the Tesla business actually required Musk's attention. Musk announced in the spring that he would return to Tesla's concerns after months of serving as Trump's cost-cutting agent in Washington.