Tesla stock fell about 7% on Monday after CEO Elon Musk announced plans to form a new political party.
The stock was on pace for its worst day since June 5, when it fell 14% as the clash between Musk and President Donald Trump erupted.
Musk said Saturday that the party would be called the "America Party" and could focus "on just 2 or 3 Senate seats and 8 to 10 House districts." He suggested this would be "enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people."
The billionaire's involvement in politics has been a point of contention for investors. Musk earlier this year was instrumental in the so-called Department of Government Efficiency and worked closely with Trump — a move seen as potentially hurting Tesla's brand.
Musk left DOGE in May, which helped Tesla's stock.
Now the tech billionaire's reinvolvement in the political arena is making investors nervous.