Tesla shares fell nearly 7% in U.S. pre-market trading on Monday and at one point slipped more than 8% after Chief Executive Officer Elon Musk said he is forming a new U.S. political group, the “America Party.” The slide erased about $68 billion in market capitalization, putting the stock on track for its worst single-day performance in months. Musk announced the party on X over the weekend, saying it would target a small number of congressional races. President Donald Trump dismissed the idea as “ridiculous,” rekindling a feud that began after Musk quit his White House role in the Department of Government Efficiency in May. The clash follows Trump’s passage of a tax-and-spending bill that Musk had criticized for scrapping electric-vehicle incentives. Analysts said the political foray heightens concerns about Musk’s focus on Tesla as the company grapples with declining vehicle deliveries and intensifying competition. William Blair cut its rating on the stock to Market Perform, and Wedbush’s Dan Ives warned that deeper involvement in politics is the “opposite direction” investors want during a critical period for the carmaker. Tesla shares have fallen about 35% since their December peak, making them the worst performer among the so-called Magnificent Seven this year. Reuters estimates the company would shed more than $80 billion in valuation if Monday’s losses persist, increasing pressure on a board already under scrutiny for its oversight of Musk after a Delaware judge voided his 2018 compensation package. With two consecutive quarterly declines in deliveries, Tesla must ship more than one million vehicles in the second half to avoid another year-over-year sales drop. Investors will look to the company’s forthcoming quarterly results for evidence that management can steady operations while its CEO pursues an unprecedented political venture.