Tesla shares sank Monday after CEO Elon Musk announced he would form a new political party in an escalation of his feud with President Donald Trump.

President Trump on Sunday issued a lengthy Truth Social post attacking former ally Elon Musk after the Tesla mogul announced he was launching a third party over opposition to Trump’s “big, beautiful bill.” “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,”…

Ross Gerber, a longtime Tesla investor and vocal Musk critic, didn’t hold back online, writing in his own post that, “no one wants the Elon first party,” accusing the company’s board of being “Elon vampires sucking the blood of Tesla equity.”

Tesla shares fell sharply in early trading Monday after CEO Elon Musk said he will launch a new political party.

Tesla CEO Elon Musk has announced plans to launch a new political party, sending Tesla's stock tumbling and roiling the markets. Tesla shares fell as much as 7.6% in pre-market trading before slightly recovering.

Mr. Musk’s involvement in politics and his financial support for the president’s campaign were once seen by investors as a benefit to Tesla, fueling a steep rise in company shares after the election last year. That association has now turned into a liability. Tesla shares are down 40 percent from their peak in December.

Investment firm Azoria Partners has delayed the listing of a Tesla exchange-traded fund soon, with CEO James Fishback calling for the board to evaluate if his political involvement is compatible with his obligations to Tesla as CEO.

Tesla (TSLA) shares lost about 7% on Monday after billionaire Elon Musk announced plans to launch a new political party – the “America Party.” Musk’s announcement arrives on the heels of his very public feud with President Donald Trump.