Shares in Tesla tanked by as much as 7.6% in premarket trading Monday after its CEO Elon Musk said he is forming a new American political party, provoking an irate response from US President Donald Trump.

Elon Musk said over the weekend he was starting a new “America Party.” That’s “exactly the opposite direction” that Tesla shareholders want, an analyst says.

Traders should now watch $250 as the next key level. A drop to that price would represent a 20% pullback from recent highs and return the stock to its longer-term bear market trendline. That target is likely to be tested within the next two weeks, barring any sharp reversal in Musk’s focus or tone.

U.S. stock-market futures declined as the Trump administration said a broad swath of tariffs against U.S. trade partners won’t take effect until Aug. 1, rather than July 9.

All three major U.S. indexes ended higher last week, notching three record closing highs despite an abbreviated trading week.