Elon Musk's net worth has taken a $15.3 billion hit after the Tesla CEO announced he was to form a new political party. The news sent ripples through financial markets and spooked investors concerned about Musk's political ambitions and possible implications for Tesla's brand and business operations.

Mr. Musk’s involvement in politics and his financial support for the president’s campaign were once seen by investors as a benefit to Tesla, fueling a steep rise in company shares after the election last year. That association has now turned into a liability. Tesla shares are down 40 percent from their peak in December.

An informal survey by Morgan Stanley in March showed that 85 per cent of nearly 250 clients believed that Musk’s political activism either had a negative or extremely negative effect on Tesla’s business. Tesla’s letter to the US Trade Representatives itself validates the findings of the Morgan Stanley survey.