Elon Musk’s involvement in politics has investors increasingly concerned.

Tesla shares plunged nearly 7% in early trading Monday after CEO Elon Musk announced he would form a new political party.

With this drop, the electric car company’s market capitalization lost more than 68 billion USD.

Earlier on Saturday, Elon Musk said the new party would be called the “America Party” and would have “just two or three Senate seats and eight to 10 House seats.” He said that would be enough to play a decisive role in controversial bills, ensuring that they “reflect the true will of the people.”

Elon Musk’s involvement in politics has long been a concern for investors. Earlier this year, he played a key role in the Department of Government Efficiency (DOGE) and was close to President Donald Trump, which was seen as damaging to Tesla’s brand image.

Elon Musk’s withdrawal from DOGE in May helped Tesla’s stock price recover. However, his return to politics has once again unsettled investors.

“Musk’s increasing political involvement and now his desire to confront the political establishment in Washington is completely contrary to Tesla shareholders’ expectations at this critical time,” said Dan Ives, director of global technology research at Wedbush Securities.

“While loyal supporters may always side with Musk, the majority of Tesla investors are tired of him constantly going down the political path,” Mr. Ives commented.

Musk’s last foray into politics was met with praise from Trump. But the two have clashed repeatedly over a number of policies, including a spending bill that Musk said would increase the nation’s debt. He has also opposed cuts to tax incentives for solar, wind, and electric vehicles.

By the end of the week, Mr. Trump had called Musk’s plans for a new party “ridiculous,” and said that the Tesla CEO had “completely lost his way.”

In addition to political troubles, Elon Musk is facing business pressures. Tesla just announced that its second-quarter deliveries fell 14% year-over-year, missing expectations. The company is also facing increased competitive pressure, especially in its key market of China.