Shares of Tesla (TSLA.O) fell more than 3%

London: Following Elon Musk’s announcement that he would create a new political party in the United States, which marked a new phase in his conflict with President Donald Trump, market fears caused Tesla’s stock (TSLA.O) to drop more than 3% on Monday.

In Frankfurt, Tesla’s stock dropped more than 3%, suggesting that it will continue to drop once premarket trading resumes after the three-day Independence Day holiday.

Wedbush’s seasoned tech analyst Dan Ives said that Musk was Tesla’s “biggest asset” and that the company’s stock will probably suffer as a result of his choice to get more involved in politics.

“Tesla needs Musk as CEO and its biggest asset and not heading down the political route yet again…while at the same time getting on Trump’s bad side,” Ives said in a note on Sunday.

“It would also not shock us if the Tesla board gets involved at some point given the political nature of this endeavor, depending on how far Musk takes it.”

On Sunday, Trump referred to Musk’s intentions to start the “America Party” as “ridiculous,” taking further jabs at the tech billionaire and claiming that Musk’s economic interests in space would have created a conflict of interest for the buddy he had appointed to head NASA.