Tesla's stock price opened 4% lower on the Frankfurt Stock Exchange (Germany) on 7/7. This suggests the stock may continue its decline when Wall Street reopens later today after the Independence Day holiday.

The drop comes amid investor concerns about CEO Elon Musk's focus on Tesla after he announced the formation of the "Party of America" to challenge both Democrats and Republicans. Veteran Wedbush technology analyst Dan Ives called Musk Tesla's "greatest asset," suggesting his deeper foray into politics could put pressure on the electric vehicle company's stock.

Tesla stock plunges on the Frankfurt exchange at the start of trading on 7/7. Chart: Google Finance

"Tesla needs Musk as CEO, not another political distraction, especially one pitting him against President Donald Trump," Ives said on 6/7. He added he "wouldn't be surprised" to see Tesla's board of directors intervene at some point, depending on how far Musk pursues his political ambitions.

On 5/7, investment firm Azoria Partners postponed plans to list its Azoria Tesla Convexity exchange-traded fund (ETF). Reuters suggests this is an early sign of investor unease with Musk's new political venture. Azoria had planned to launch the Tesla ETF, which would have invested in the electric car company's stock and options, next week.

President Trump criticized Musk's move on 6/7 as "ridiculous." "It's always been a two-party system, and I think a third party just adds to the confusion," Trump explained, adding that third parties "have never been effective."

Elon Musk has been a close ally and major donor to Trump's campaigns. After taking office in January, the president appointed Musk to lead the Domestic and Global Operations (DOGE) to reform government and cut costs. However, their relationship reportedly frayed after Musk's 130-day special government employee term expired and he criticized the president's spending bill.

Ha Thu (via Reuters)