Dhaka, July 8 -- Tesla shares dropped 7% on Monday amid a renewed public feud between CEO Elon Musk and former U.S. President Donald Trump, alarming investors already wary of the electric carmaker's political entanglements and slumping sales.

The fallout began after Musk, once a key Trump ally and donor, announced over the weekend that he would launch a third political party in protest against a recently passed Republican spending bill. Musk criticized the bill for threatening jobs and stalling innovation in key industries.

In response, Trump accused Musk of going "off the rails" in a post on Sunday, escalating tensions between the two influential figures.

The political clash has raised fears that Musk's companies-including Tesla, Spac...