Tesla’s market capitalization took a severe hit on Monday, falling by $79 billion and threatening its trillion-dollar valuation. The 6.8% drop in shares was primarily driven by investor concerns over Elon Musk’s announcement of a new political party, raising fears that his political ambitions will distract him from his crucial role at the electric vehicle company.

The significant decline, which saw Tesla’s market value dip from just over $1 trillion to approximately $921 billion, highlights the immediate and negative market reaction to Musk’s deepening involvement in politics. This follows previous anxieties related to his complex relationship with Donald Trump, which had already sparked concerns about consumer backlash and potential governmental actions against his businesses.

Analysts are vocal about the “broader sense of exhaustion” among Tesla shareholders, who are increasingly keen for Musk to focus solely on the company’s strategic growth. The prevailing opinion is that his deeper involvement in politics is counterproductive to Tesla’s trajectory during this pivotal time.

Musk publicly declared the creation of the “America party” on his X platform, stating its purpose was to combat government waste and restore freedom. However, the market’s swift negative reaction, coupled with sharp criticism from figures like Donald Trump, suggests that investors view this political venture as a significant liability for Tesla.