(Bloomberg) — Tesla Inc. shares fell after Elon Musk announced he’s forming a new political party, digging deeper into a pursuit that’s been a drag on his most valuable business.

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The chief executive officer announced over the weekend that he’ll take on Republicans and Democrats with the “America Party,” focusing on House and Senate seats for the next 12 months. After that, backing a candidate for president isn’t out of the question, Musk wrote on X.

Tesla’s stock slid 7.4% as of 11 a.m. Monday in New York, wiping out $16.7 billion from his net worth, according to the Bloomberg Billionaires Index. If that drop were to hold, it would be the biggest decline for the shares since Musk’s initial falling out with Donald Trump over the president’s tax bill in early June.

The stock has declined 28% this year as the CEO’s politicking has hurt Tesla’s standing with car buyers.

“Investors are growing tired of the distraction at a point when the business needs Musk’s attention the most and only see downside from his dip back into politics,” Jed Dorsheimer, an equity analyst at William Blair, said in a note Monday, downgrading Tesla to the equivalent of a hold.

Musk has yet to provide much detail about his political party, and there’s no indication he’s filed official paperwork with the US Federal Election Commission. His emergence as the leading spender during last year’s election cycle further complicated the task of running half a dozen companies pursuing everything from artificial intelligence to sending rockets to Mars.

Devoting resources and attention to a new political party runs counter to what Musk told Tesla investors he’d do during the company’s last earnings call. He vowed to allocate “far more” of his time to the company after his work for the Trump administration ended in May.

“The board is going to have to get involved,” Dan Ives, an equity analyst at Wedbush Securities, told Bloomberg Television, saying he was frustrated as a supporter of Tesla. “There’s a line in the sand that he’s now starting to cross.”

Musk and Robyn Denholm, Tesla’s board chair, didn’t immediately respond to requests for comment.

Related: Tesla’s Slump Exposes Musk’s Distractions Across His Empire

Tesla disclosed in April that the board had established a special committee to consider compensation matters involving Musk. The company is appealing a Delaware court’s decision to void an unprecedented pay package arranged for the CEO in 2018, in part on the grounds that it was excessive for a less-than-full-time executive.

The Microsoft (NASDAQ:MSFT)-backed OpenAI boss, once comfortable in the Democratic tent, now feels the party has drifted so far that it no longer reflects his views. Instead, Sam Altman proposes what he dubs techno-capitalism: let people chase big paydays, but also build systems that spread that wealth far and wide.

As he put it, you can’t keep the floor up without also raising the ceilingboth sides matter.Altman’s timing wasn’t an accident.

His comments echo a growing rift in Silicon Valley over how to balance innovation, inequality and regulation.

He even took a swipe at voices like New York mayoral hopeful Zohran Mamdani, who says billionaires simply shouldn’t exist.

Altman argues we need the energy that comes from rewarding successand then figure out smart ways to share the gains.

What’s next? Tech leaders’ political leanings can shape everything from AI rules in Washington to public trust in their products.

By stepping away from a major party, Altman is staking out new groundone that champions entrepreneurial drive but insists on broader social benefits. Whether investors, policymakers or the public buy into his techno-capitalism experiment remains to be seen.

This article first appeared on GuruFocus.

Biggest S&P 500 Movers on Wednesday These were the biggest movers in the S&P 500 during Wednesday’s regular trading session. Advancers Shares of defense contractor Leidos Holdings (LDOS) jumped 5.9%, gaining the most of any S&P 500 stock. A Politico report indicated that President Trump has communicated to members of his administration about Elon Musk stepping away from his government advisory role. That boosted investor sentiment around defense firms and other government contractors. Other defense stocks also gained ground. (Musk called the report “fake news.”)

(LDOS) jumped 5.9%, gaining the most of any S&P 500 stock. A Politico report indicated that President Trump has communicated to members of his administration about Elon Musk stepping away from his government advisory role. That boosted investor sentiment around defense firms and other government contractors. Other defense stocks also gained ground. (Musk called the report “fake news.”) Caesars Entertainment (CZR) shares moved 5.8% higher. Analysts forecast a recovery on the Las Vegas Strip in March, linking February’s year-over-year declines in gaming wins to unique events in 2024, including an extra day in the month due to Leap Year and a traffic boost from the Super Bowl taking place in the city, which distorted comparisons this year. Even after Wednesday’s gain, Caesars stock is down more than 20% year-to-date and has lost nearly 40% over the past six months. Tourists take photos outside Caesars Palace hotel and casino in Las Vegas. Ronda Churchill / Bloomberg / Getty Images Tesla (TSLA) shares started the session in negative territory as the electric vehicle maker reported fewer-than-expected deliveries in the first quarter, but the stock shifted gears after the report about Musk, its CEO, potentially distancing himself from the Department of Government Efficiency. Tesla shares ended with a daily gain of 5.3%. Decliners The heaviest decline in the S&P 500 hit shares of chocolate maker Hershey (HSY), which slipped 3.3%. The stock has been trending downward for the past two weeks as the confectioner navigates the rising cost of cocoa and aims to source more cocoa beans directly. Last week, analysts at Piper Sandler affirmed their “underperform” rating on Hershey stock, noting that pricing pressure for the key input could persist into next year. The company also trimmed its 2025 profit guidance, pointing to soft retail sales momentum.

(HSY), which slipped 3.3%. The stock has been trending downward for the past two weeks as the confectioner navigates the rising cost of cocoa and aims to source more cocoa beans directly. Last week, analysts at Piper Sandler affirmed their “underperform” rating on Hershey stock, noting that pricing pressure for the key input could persist into next year. The company also trimmed its 2025 profit guidance, pointing to soft retail sales momentum. Shares of tobacco giant Altria Group (MO) dropped 2.8% after Deutsche Bank downgraded the stock to “hold” from “buy.” Analysts pointed to concerns about the stock’s valuation, suggesting there could be limited room for additional gains following its strong performance this year. Altria also faces regulatory issues related to its e-vapor business, with the International Trade Commission determining that certain products infringe on patents owned by Juul Labs. Altria has reportedly halted sales of its NJOY Ace e-cigarettes following the decision.

(MO) dropped 2.8% after Deutsche Bank downgraded the stock to “hold” from “buy.” Analysts pointed to concerns about the stock’s valuation, suggesting there could be limited room for additional gains following its strong performance this year. Altria also faces regulatory issues related to its e-vapor business, with the International Trade Commission determining that certain products infringe on patents owned by Juul Labs. Altria has reportedly halted sales of its NJOY Ace e-cigarettes following the decision. Agricultural equipment stocks came under pressure after analysts at Jefferies raised concerns about the potential impact of trade tensions on U.S. agricultural exports. Although aid to farmers has helped buoy agricultural markets during past disputes, analysts cautioned that such programs have historically done little to support machinery sales. Deere & Co. (DE) shares sank 1.6%. -Michael Bromberg

Tariffs ‘Far Worse Than Expected’ U.S. trade policy could evolve from what was revealed Tuesday, according to Northlight Asset Management chief investment officer Chris Zaccarelli, but this evening’s market action indicates that investors may not be willing to wait and see. “The silver lining for investors could be that this is only a starting point for negotiations with other countries and ultimately tariff rates will come down across the board,” Zaccarelli wrote in emailed comments. “But for now traders are shooting first and asking questions later.”The details of the tariffs as revealed Wednesday were “far worse than expected,” Zaccarelli wrote. -David Marino-Nachison

Comerica Sees Tariffs Weighing on Economic Growth This Year The Trump administration tariffs announced Wednesday will mean “less disposable spending power in consumer pockets,” said Comerica Bank Chief Economist Bill Adams in emailed comments, “weighing on economic growth and hiring in the rest of 2025.” Comerica will mark its 2025 forecast for inflation-adjusted real GDP in its April forecast down to 1.7% from 2.5% in February, Adams said. “Consumer and business sentiment could recover in the second half of 2025 if the national conversation turns away from tariffs and trade war and toward the tax cuts that the tariffs might help fund,” Adams wrote. -David Marino-Nachison

Bitcoin, Crypto Stocks Tumble After Tariff Announcement Bitcoin fell late Wednesday after President Donald Trump’s latest tariff announcement roiled markets. The leading cryptocurrency recently changed hands a bit below $83,000, dropping from near $88,000 just before Trump unveiled the trade policies late this afternoon. Trump formally announced reciprocal tariffs that hit a broad swath of countries, including a range of large U.S. trading partners. Stocks had risen during the day, but many were hard hit in after-hours action. Risk assets in particular pulled back, with the “QQQ” ETF tracking the tech-focused Nasdaq 100 index retreating some 4%. Several crypto-related stocks also fell in after-hours trading. Strategy (MSTR), the big bitcoin buyer formerly known as MicroStrategy, was recently down about 7%. Crypto exchange Coinbase Global (COIN) and bitcoin miner MARA Holdings (MARA) each fell about 7%, while trading platform Robinhood (HOOD) dropped more than 9%. -David Marino-Nachison

RH Plunges as Company Cites ‘Worst Housing Market in 50 Years’ RH (RH) shares plummeted in extended trading Wednesday after the company issued a weaker-than-expected outlook and said it’s facing “the worst housing market in 50 years.” The luxury home furnishings retailer said it expects revenue to grow 10% to 13% year-over-year in fiscal 2026, below the analyst consensus compiled by Visible Alpha. Its first-quarter growth projection of 12.5% to 13.5% also missed estimates. RH shares lost nearly a quarter of their value in after-hours trading. As of Wednesday’s close, the stock was down about 37% for 2025. “We expect a higher risk business environment this year due to the uncertainty caused by tariffs,” RH said in a statement. The company reported results as President Trump announced sweeping tariffs on goods from a wide range of countries Wednesday evening. “The fact is, we’ve been operating in the worst housing market in almost 50 years,” the company added. In its fiscal fourth quarter, RH reported revenue of $812.4 million, up 10% year-over-year but below the analyst consensus. Adjusted net income of $31.7 million, or $1.58 per share, was up from $14.3 million, or 72 cents per share, a year earlier, but also missed expectations. -Andrew Kessel

Amazon, AppLovin Reportedly Bid to Buy TikTok Amazon (AMZN) and adtech firm AppLovin (APP) have become the latest firms to bid for TikTok, ahead of a U.S. ban of the app set to go into effect Saturday if no deal is reached with the app’s Chinese parent company. Amazon submitted a letter outlining its bid to Vice President JD Vance and Commerce Secretary Howard Lutnick, according to a New York Times report Wednesday. However, officials involved in talks are not taking the offer seriously, the report said, citing people familiar with the bid. Meanwhile, AppLovin has met with former Wynn Resorts (WYNN) CEO Steve Wynn about possible financial backing, according to a Wall Street Journal report Wednesday.

The offers come as Trump is meeting with Vance, Lutnick and other officials Wednesday about a potential deal led by Oracle (ORCL), according to reporting from the New York Times and others. Wedbush analysts told clients in a note Tuesday that they believe Oracle’s offer could potentially serve as “a linchpin to safeguarding US consumer data” on the platform.3 The analysts added they expect “some outline of a deal” could be announced before Friday night, but that an extension might also be issued to allow the parties involved to iron out details. If no deal for TikTok is reached, a U.S. ban of the app is set to go into effect Saturday, after President Trump signed an executive order in January delaying the action by 75 days. Several others have also previously expressed interest in buying TikTok, including “Shark Tank” host Kevin O’Leary and Project Liberty founder Frank McCourt, who had submitted a proposal in January. Reddit (RDDT) co-founder Alexis Ohanian joined the bid in March. -Andrew Kessel

Edgewise Therapeutics Stock Plunges on Drug Trial Results Edgewise Therapeutics (EWTX) shares tumbled more than 20% Wednesday after the developmental drug company issued the results of its latest clinical trial. The company released the results of a Phase 2 trial for EDG-7500, a drug to treat Hypertrophic Cardiomyopathy (HCM), a condition that involves thickened heart muscles, which can make it more difficult for the heart to pump blood effectively. Edgewise said the drug largely accomplished its goal of reducing left ventricular outflow tract gradient (LVOT-G)–a metric that measures how difficult it is for the heart to pump blood–“without meaningful changes in left ventricular ejection fraction (LVEF).” However, the drug’s side effects have overshadowed the positive results. The most common side effects were dizziness and an infection in the upper respiratory tract, along with atrial fibrillation (AF), also known as an irregular heartbeat. However, “two participants experienced serious adverse events of AF requiring cardioversion,” or treatment to get a heart back to a normal rhythm. The company said that the rate of patients who experienced AF was within the range of similar studies with other drugs. According to Investor’s Business Daily, RBC Capital Markets analyst Leonid Timashev wrote in a note, “The fact that two were serious is a complexity that could prompt the FDA to review this closely.” Shares of Cytokinetics (CYTK), which is working on a competing drug, jumped 7% on the concerning results for Edgewise. Shares of Edgewise tumbled 23%. -Aaron McDade

BlackBerry Sinks on Weaker-Than-Expected Outlook BlackBerry (BB) shares tumbled Wednesday after the company issued revenue forecasts that fell short of analysts’ expectations. The Canadian technology company projected fiscal 2026 revenue of $504 million to $534 million, below the Visible Alpha consensus of $567.3 million.Its current-quarter revenue estimate of $107 million to $115 million also fell short of analysts’ projections. BlackBerry sees Secure Communications unit revenue falling to a range of $230 million to $240 million in fiscal 2026 from $272.6 million the prior year. Analysts had expected $277 million. For its fiscal 2025 fourth quarter, BlackBerry reported adjusted earnings per share (EPS) of 3 cents on revenue that fell 7% year-over-year to $141.7 million. Both figures beat analysts’ expectations. TradingView Shares of BlackBerry, which once dominated the smartphone market, were down 10% in late trading Wednesday. The stock has lost about 45% of its value since posting a 52-week high in mid-February, but is still up 20% over the past 12 months. -Andrew Kessel

DJT Falls Amid Worries Trump Trust Could Sell Shares Trump Media & Technology Group’s (DJT) stock slid Wednesday after a regulatory filing raised worries company insiders could sell shares. The Truth Social operator said it could sell nearly 8.4 million shares of stock thanks to existing share warrants related to its March 2024 IPO, according to a filing with the U.S. Securities and Exchange Commission. TMTG also said some 134 million shares could be sold “from time to time” by insiders, including more than 114 million held by the Donald J. Trump Revocable Trust. Shares of TMTG were down more than 6% in recent trading. The stock has lost more than half its value since Trump took office in January. In a statement, TMTG called the filing “routine” and said the Trump trust has no plans to sell. That echoes a Truth Social post from Trump in November in which he said, “I HAVE NO INTENTION OF SELLING.” The White House and Trump Organization did not immediately respond to requests for comment.

-Andrew Kessel

DoorDash Stock Surges on Domino’s Pizza Partnership DoorDash (DASH) shares jumped Wednesday after the delivery platform announced a new partnership with Domino’s Pizza (DPZ). DoorDash users will be able to order Domino’s throughout the U.S. starting in May, with a rollout in Canada expected later this year, the companies said. Since July 2023, Domino’s has had an exclusive partnership with Uber (UBER) Eats, a deal that ends May 1. “The ability to connect seamlessly with DoorDash customers means more sales for Domino’s stores, while efficiently leveraging our brand’s robust delivery network,” Domino’s COO Joe Jordan said. “Tapping into incremental customers, particularly in suburban and rural markets, is a meaningful opportunity for Domino’s, as our brand continues to open stores nationwide.” In the pizza giant’s last earnings call in February, CEO Russell Weiner said that Uber accounted for 3% of its $19.12 billion in sales for 2024, according to an AlphaSense transcript. Jordan on Wednesday repeated Domino’s previously stated belief that third-party “aggregator” services like DoorDash could eventually make up $1 billion in annual sales. DoorDash stock was among the biggest gainers in the S&P 500 Wednesday afternoon, with shares up nearly 5%, while Domino’s shares inched higher. TradingView DoorDash shares have gained 40% over the past 12 months, far outpacing the performance of the S&P 500 over the period. -Aaron McDade

Tesla Jumps on Report Musk May Soon Leave Government Role Tesla’s stock turned positive Wednesday as a report suggested that CEO Elon Musk might be stepping back from some of his government work. Shares of Tesla (TSLA) recently were up 5%, climbing back into the green after the company’s latest quarterly deliveries news pulled them lower in morning trading. Part of the reason may be a report from Politico saying that President Trump has been telling people Musk could soon “return to his businesses and take on a supporting role” politically. Politico’s report cited “three Trump insiders who were granted anonymity to describe the evolving relationship.” Musk has been a particularly active member of Trump’s second administration, leading the efforts of the Department of Government Efficiency and, more recently, pouring millions of dollars into an ultimately unsuccessful effort to elect a Republican candidate to Wisconsin’s Supreme Court. Musk’s close and constant work with Trump, which included the president promoting Tesla’s vehicles at the White House, had attracted its share of detractors, including those of a partisan nature but also investors concerned that he wasn’t spending enough time managing Tesla at a challenging time for the auto business and signs that its car business is slowing. Last week Musk said his xAI artificial-intelligence company had acquired the social-media network X that he also owns. -David Marino-Nachison

Newsmax Plummets After Wild Post-IPO Run-Up Newsmax’s wild ride continues. Shares of the media company were recently off some 45% to $128, plummeting to start their third day of trading. Newsmax (NMAX) went public Monday—its IPO price was $10, and it opened at $14—to kick off a dramatic upward run. The stock finished yesterday at $233 after slipping from intraday highs of $265. Investors’ eagerness to get a piece of the action has been hard to miss, outstripping the enthusiasm for another recent high-profile IPO. Nvidia-backed (NVDA) data center company CoreWeave (CRWV) finished Friday, its first day of trading, right at its IPO price—but it raced higher Tuesday, ending the day above $52. The stock was up about 5% at $55 in recent trading. Until this morning, investors had largely been willing to place bets on Newsmax, a company that hasn’t yet turned a profit. Newsmax, as of yesterday’s close, had a market capitalization higher than that of Fox Corp. (FOX). “I think we’re becoming very competitive” with Fox News, CEO Chris Ruddy said Monday on CNBC, describing Newsmax as “conservative, with an independent news mission. -David Marino-Nachison

J&J Levels to Watch After Stock Plunged Tuesday Johnson & Johnson (JNJ) shares moved higher in early trading Wednesday after tumbling yesterday following news the health care giant failed to reach a settlement in liability cases related to its baby powder and other talc products. The stock was up about 1% at around $155 in early trading this morning after falling nearly 8% to lead S&P 500 decliners on Tuesday, Despite the steep drop, Johnson & Johnson shares had gained 6% so far this year as of Tuesday’s close, handily outpacing the S&P 500’s 4% decline over the same period. Since setting their record high in April 2022, Johnson & Johnson shares have traded lower within an orderly descending channel, tagging the pattern’s upper and lower trendlines on several occasions since that time. Source: TradingView.com. More recently, the Dow component ran into selling pressure near the descending channel’s upper trendline, with the price falling below both the 50- and 200-week moving averages in Tuesday’s trading session. Tuesday’s drop also coincided with the relative strength index (RSI) plunging below the 50 threshold, signaling accelerating selling momentum. Investors should watch key support levels on Johnson & Johnson’s chart around $147 and $137, while also monitoring major resistance levels near $167 and $180. Read the full technical analysis piece here. -Timothy Smith

Tesla Stock Slides After Q1 Deliveries Disappoint Tesla (TSLA) shares fell on premarket trading after the electric vehicle maker’s first-quarter deliveries came in below analysts’ expectations. Tesla said it delivered 336,681 vehicles and produced 362,615 in the quarter, down from 386,810 deliveries and 433,371 vehicles produced a year ago. Production fell year-over-year as some Tesla facilities shifted to producing the refreshed Model Y, which was released earlier this year, the company said. Analysts had expected 393,000 deliveries and 462,160 vehicles produced, according to Visible Alpha. The deliveries estimate had fallen 14% since Tesla reported fourth-quarter results in January. Shares of the EV maker, which have lost a third of their value in 2025 through Tuesday’s close, were down nearly 5% shortly before the opening bell on Wednesday. In the fourth quarter, Tesla’s deliveries and production also fell short of estimates, with the EV maker reporting its first annual deliveries decline. Later in January, Tesla said it expected deliveries to return to growth in 2025. President Donald Trump and Tesla CEO Elon Musk depart after looking at Tesla vehicles on the South Lawn of the White House on March 11, 2025. Andrew Harnik / Getty Images Tesla stock has slumped this year over concerns that CEO Elon Musk’s involvement in the Trump administration is negatively affecting the company. Some of Tesla’s biggest bulls on Wall Street have called for Musk to divide his time more evenly between his government work and his companies, including Tesla. Tesla dealerships have been the subject of protests and vandalism in recent weeks, with reports indicating sales and registrations have fallen in China and a number of countries across Europe in the opening months of 2025. Tesla said it would release its first-quarter results after the bell on April 22. -Aaron McDade

Fintech Firm nCino Tumbles on Weak Results, Outlook Shares of cloud-based financial software maker nCino (NCNO) lost a third of their value in premarket trading Wednesday, a day after the company’s quarterly results disappointed. For its fiscal 2025 fourth quarter, nCino reported $141.4 million in revenue, up 14% year-over-year and in line with Visible Alpha estimates. However, it reported a loss per share of $0.16, four times what analysts had expected, and adjusted earnings per share (EPS) of $0.12, one-third below the consensus forecast. For the current quarter, nCino forecasts revenue of $138.75 million to $140.75 million and adjusted EPS of $0.15 to $0.16. For fiscal 2026, the company expects revenue of $574.5 million to $578.5 million and adjusted EPS of $0.66 to $0.69. All came in below consensus estimates. Shares of the software maker were down 34% in recent premarket trading to around $18.50, which would represent a new all-time low. -Aaron McDade