Tuesday, July 29, 2025

Tesla Tanks $68B as Musk Unveils New Political Party

depositphotos

The New York stock market took a hit on Monday as markets reopened after the Independence Day holiday. The downturn came after U.S. President Donald Trump released trade letters imposing 25% reciprocal tariffs on both South Korea and Japan.

The S&P 500 and Nasdaq, which had set consecutive record highs on July 2 and 3, fell in tandem with the Dow Jones Industrial Average.

Tesla’s stock plummeted 6.8% in the wake of CEO Elon Musk’s announcement on July 5 about launching a new political party called the America Party. The company’s market value plummeted by over $ 68 billion in a single day.

Trade War Reignites

After setting record highs for two consecutive days before the holiday, the New York stock market reopened lower.

Trump disclosed trade letters for South Korea and Japan, followed by letters for five other nations: Malaysia, Laos, Myanmar, Kazakhstan, and South Africa.

These countries face reciprocal tariffs beginning August 1 if trade agreements aren’t reached.

Laos and Myanmar are set to impose 40% reciprocal tariffs on each other.

Seven of the 15 trade letters Trump plans to send between July 7 and 9 were made public on this day.

As Trump rekindled the trade war, the stock market’s record-breaking run came to an abrupt end.

The Dow Jones Industrial Average closed down 422.17 points (0.94%) at 44,406.36.

The S&P 500 and Nasdaq, after two days of record highs, also declined. The S&P 500 fell 49.37 points (0.79%) to 6,229.98, while the Nasdaq dropped 188.59 points (0.92%) to 20,412.52.

Tesla Sheds $68 Billion in Market Value

Amid the negative reaction to Tesla CEO Musk’s new political party, the Company’s stock price dipped below $300 for the first time in a month.

The stock slid $21.41 (6.79%) to close at $293.94, marking its first close below $300 since June 6.

CNBC reported that the company’s market capitalization plummeted by over $68 billion on Monday alone.

Among Magnificent Seven, Only Amazon Holds Steady

Except for Amazon, which posted a slight gain, all other members of the Magnificent Seven tech giants saw declines.

Nvidia dropped $1.10 (0.69%) to $158.24, while Apple fell $3.60 (1.69%) to $209.95.

Alphabet declined by $2.99 (1.66%) to $177.56, and Microsoft slipped $1.12 (0.22%) to $ 497.72.

Amazon bucked the trend, inching up $0.06 (0.03%) to close at $223.47.

Hot this week

U.S. Hits Chinese Graphite With 93% Tariff—Your Next EV Just Got Pricier

The U.S. imposes a 93.5% tariff on Chinese graphite, risking a $1,000 increase in EV prices as tax credits end and production costs rise.

Crypto Boom: XRP Soars After Congress Passes Stablecoin Bill

The Stablecoin Act has passed Congress, boosting crypto markets, with XRP hitting a new all-time high and regulatory clarity for stablecoins.

Market Panic? Rich Investors Saw a Bargain, Morgan Stanley Says

Morgan Stanley's profits surged as wealthy clients bought stocks during a market downturn, driven by Trump's tariff announcement.

Oil Prices Keep Dropping as Trade Fears Grow

Oil prices fell for the third consecutive day due to rising U.S. gasoline inventories and trade tensions impacting global demand.

Tesla and BYD Battle for Japan’s Electric Car Crown: Who Will Win?

Tesla and BYD aggressively expand in Japan's EV market, aiming to challenge local automakers amidst low EV adoption rates.

Topics

U.S. Hits Chinese Graphite With 93% Tariff—Your Next EV Just Got Pricier

The U.S. imposes a 93.5% tariff on Chinese graphite, risking a $1,000 increase in EV prices as tax credits end and production costs rise.

Crypto Boom: XRP Soars After Congress Passes Stablecoin Bill

The Stablecoin Act has passed Congress, boosting crypto markets, with XRP hitting a new all-time high and regulatory clarity for stablecoins.

Market Panic? Rich Investors Saw a Bargain, Morgan Stanley Says

Morgan Stanley's profits surged as wealthy clients bought stocks during a market downturn, driven by Trump's tariff announcement.

Oil Prices Keep Dropping as Trade Fears Grow

Oil prices fell for the third consecutive day due to rising U.S. gasoline inventories and trade tensions impacting global demand.

Tesla and BYD Battle for Japan’s Electric Car Crown: Who Will Win?

Tesla and BYD aggressively expand in Japan's EV market, aiming to challenge local automakers amidst low EV adoption rates.

Nvidia Stock Surges Past $170 After U.S. Clears China Chip Exports

Nvidia's stock surged over 4% after the Trump administration lifted export restrictions on H20 semiconductors to China.

Army’s New Shaving Rule Could Push Out Thousands of Black Soldiers

The U.S. Army's new shaving policy may disproportionately impact Black soldiers with shaving difficulties, raising concerns over its fairness.

Trump Slams Fed Chair Again, Demands Rates Below 1%

Trump criticizes Fed Chair Powell, insists interest rates should drop below 1%, claiming the economy is strong and inflation is nonexistent.

Related Articles