Tesla shares fell nearly 8% on Monday after CEO Elon Musk's plans to launch a new U.S. political party reignited concerns about his commitment to the company's future as it struggles with declining sales.

Tesla stock is already down more than 35% from its December highs, making it the worst performer among the “Magnificent Seven” tech giants this year. And with margins under pressure, competition heating up and demand softening, the last thing investors wanted was more distraction at the top.