Billionaire entrepreneur Elon Musk has announced the creation of a new political movement, the “America Party,” aiming to challenge the dominance of the Republican and Democratic parties. The move comes as Musk continues to criticize President Trump’s recently signed One Big Beautiful Bill Act (OBBBA), sparking mixed reactions across political and financial circles.
Over the weekend, Musk took to X, the social media platform he owns, to launch a viral poll asking users if they support independence from what he called the “two-party (some would say uniparty) system.” The majority of respondents backed the idea, prompting Musk to declare the formation of the America Party.
“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” Musk wrote. “The America Party will give you back your freedom.”
Tesla stock tumbled 7.7% when markets opened on Monday, as investors expressed concern over Musk’s renewed involvement in politics. Some fear this could distract him from leading the electric car giant at a critical time.
“Very simply, Musk diving deeper into politics is the opposite of what Tesla investors want right now,” said Dan Ives, managing director at Wedbush Securities. “The company needs stability, not more distractions.”
Tesla’s shares are already down over 22% this year, weighed down by protests and boycotts tied to Musk’s earlier government role in Trump’s administration.
Musk’s announcement also reignited tensions with Trump, who responded on Truth Social.
“It’s sad to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,” Trump wrote. “Third parties never succeed in the U.S. and only create total disruption and chaos.”
Musk had previously criticized the OBBBA, calling it a “pork-filled spending bill” that “supports industries of the past while damaging those of the future,” particularly renewable energy.
Analysts warn that Musk’s political ambitions could harm Tesla’s focus during a critical growth phase.
“There was initial relief when Musk left his government role, but now investors are growing weary of his repeated political entanglements,” Ives added. “Tesla needs its leader focused on innovation, not Beltway battles.”
As Musk forges ahead with his America Party initiative, questions remain about its potential influence and the impact on Tesla’s trajectory. Meanwhile, Musk has doubled down on his promise to oppose both major parties, positioning his movement as a disruptive force in U.S. politics.
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