06:24 AM EDT, 07/07/2025 (MT Newswires) -- Tesla (TSLA) Chief Executive Elon Musk's "deeper" dive into politics through the formation of a new US political party is "exactly the opposite direction" the company's shareholders prefer for Musk to take during this "crucial" phase of Tesla, Wedbush said in a Sunday note.

There was an initial sigh of relief when Musk left the Trump administration and the US Department of Government Efficiency, but the relief remained for a very short period and now has taken a turn for the "worst" with the formation of the America Party, analysts led by Daniel Ives wrote.

Additionally, Musk has taken the political game to the next level with the launch of the new party and this might take his focus away from his businesses, including Tesla and SpaceX, according to the note.

The EV manufacturer's shares will likely be under some pressure as stockholders worry about the "implications" if Trump and his party view Musk's decision more as a "foe" rather than a friend, the analysts mentioned.

"Given the limited success independents have seen politically in the US historically, this will be viewed as a disruptive (for Tesla) and political gamble by Musk heading into competitive congressional races in 2026 and create some agita for investors," the analysts said.

Wedbush maintained an outperform rating and a $500 price target on Tesla's stock.

Shares of Tesla were down 6.5% in recent Monday premarket activity.