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

Tesla stock is weaker in premarket trade as investors react to Elon Musk’s announcement that he will form a new U.S. political party.

But then, the news that investors had been hoping for; Musk announced he would be stepping away from government to focus on his businesses. Tesla stock recovered to as high as $356, although the ride remains uncomfortable. Musk also began raising capital for his artificial intelligence business xAI Corp., said to have a $5 billion target.