The stock drop comes amid Musk's announcement of a new political party, which William Blair and other analysts say risks diverting attention during a crucial autonomous and roboti

Dan Ives, an analyst with Wedbush Securities, wrote that Musk's continued push into politics was "exactly the opposite direction" investors wanted to see.

Investors at Tesla have implored the electric vehicle manufacturer’s board to rein in their wayward CEO after his latest stunt saw the company’s stock tank. “The board can’t just sit here and watch this go by without saying something and putting guardrails in,